Correlation Between Walker Dunlop and TEN SQUARE

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Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and TEN SQUARE 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 TEN SQUARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and TEN SQUARE GAMES, you can compare the effects of market volatilities on Walker Dunlop and TEN SQUARE 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 TEN SQUARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and TEN SQUARE.

Diversification Opportunities for Walker Dunlop and TEN SQUARE

WalkerTENDiversified AwayWalkerTENDiversified Away100%
-0.21
  Correlation Coefficient

Very good diversification

The 3 months correlation between Walker and TEN is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and TEN SQUARE GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEN SQUARE GAMES 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 TEN SQUARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TEN SQUARE GAMES has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and TEN SQUARE go up and down completely randomly.

Pair Corralation between Walker Dunlop and TEN SQUARE

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the TEN SQUARE. In addition to that, Walker Dunlop is 1.06 times more volatile than TEN SQUARE GAMES. It trades about -0.2 of its total potential returns per unit of risk. TEN SQUARE GAMES is currently generating about 0.2 per unit of volatility. If you would invest  1,647  in TEN SQUARE GAMES on November 26, 2024 and sell it today you would earn a total of  261.00  from holding TEN SQUARE GAMES or generate 15.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy97.5%
ValuesDaily Returns

Walker Dunlop  vs.  TEN SQUARE GAMES

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-15-10-50510
JavaScript chart by amCharts 3.21.15WD 1HQ
       Timeline  
Walker Dunlop 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Walker Dunlop has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb859095100105110115
TEN SQUARE GAMES 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in TEN SQUARE GAMES are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, TEN SQUARE may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb16.51717.51818.51919.520

Walker Dunlop and TEN SQUARE Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.44-2.57-1.71-0.850.00.711.432.152.86 0.060.070.080.090.10
JavaScript chart by amCharts 3.21.15WD 1HQ
       Returns  

Pair Trading with Walker Dunlop and TEN SQUARE

The main advantage of trading using opposite Walker Dunlop and TEN SQUARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, TEN SQUARE 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 TEN SQUARE will offset losses from the drop in TEN SQUARE's long position.
The idea behind Walker Dunlop and TEN SQUARE GAMES 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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