Correlation Between Walker Dunlop and Armlogi Holding

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

Diversification Opportunities for Walker Dunlop and Armlogi Holding

WalkerArmlogiDiversified AwayWalkerArmlogiDiversified Away100%
0.94
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Walker and Armlogi is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Armlogi Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armlogi Holding Corp 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 Armlogi Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armlogi Holding Corp has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Armlogi Holding go up and down completely randomly.

Pair Corralation between Walker Dunlop and Armlogi Holding

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.34 times more return on investment than Armlogi Holding. However, Walker Dunlop is 2.96 times less risky than Armlogi Holding. It trades about 0.01 of its potential returns per unit of risk. Armlogi Holding Corp is currently generating about -0.02 per unit of risk. If you would invest  8,122  in Walker Dunlop on November 26, 2024 and sell it today you would earn a total of  87.00  from holding Walker Dunlop or generate 1.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy39.6%
ValuesDaily Returns

Walker Dunlop  vs.  Armlogi Holding Corp

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -30-20-10010
JavaScript chart by amCharts 3.21.15WD BTOC
       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
Armlogi Holding Corp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Armlogi Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic 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 3.21.15DecJanFebJanFeb2.533.544.555.566.5

Walker Dunlop and Armlogi Holding Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.44-2.57-1.71-0.86-0.0120.71.412.132.853.57 0.020.040.060.080.10
JavaScript chart by amCharts 3.21.15WD BTOC
       Returns  

Pair Trading with Walker Dunlop and Armlogi Holding

The main advantage of trading using opposite Walker Dunlop and Armlogi Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Armlogi Holding 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 Armlogi Holding will offset losses from the drop in Armlogi Holding's long position.
The idea behind Walker Dunlop and Armlogi Holding Corp 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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