Correlation Between Walker Dunlop and Strategic Asset

Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Strategic Asset at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Walker Dunlop and Strategic Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Walker Dunlop and Strategic Asset Management, you can compare the effects of market volatilities on Walker Dunlop and Strategic Asset and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Walker Dunlop with a short position of Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Strategic Asset.

Diversification Opportunities for Walker Dunlop and Strategic Asset

-0.19

Correlation Coefficient

Walker Dunlop  Strategic Asset

Good diversification

The 3 months correlation between Walker and STRATEGIC is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana and Walker Dunlop is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Walker Dunlop are associated (or correlated) with Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Strategic Asset go up and down completely randomly.

Pair Corralation between Walker Dunlop and Strategic Asset

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Strategic Asset. In addition to that, Walker Dunlop is 7.48 times more volatile than Strategic Asset Management. It trades about -0.14 of its total potential returns per unit of risk. Strategic Asset Management is currently generating about 0.13 per unit of volatility. If you would invest  1,293  in Strategic Asset Management on September 3, 2025 and sell it today you would earn a total of  34.00  from holding Strategic Asset Management or generate 2.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Walker Dunlop  vs.  Strategic Asset Management

Walker Dunlop

Risk-Adjusted Performance

Weakest

Over the last 90 days Walker Dunlop has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in January 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Strategic Asset Mana

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Strategic Asset Management are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Strategic Asset is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Walker Dunlop and Strategic Asset

The main advantage of trading using opposite Walker Dunlop and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Strategic Asset can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Strategic Asset will offset losses from the drop in Strategic Asset's long position.

The idea behind Walker Dunlop and Strategic Asset Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.