Correlation Between Walker Dunlop and JP Morgan

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and JP Morgan 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 JP Morgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and JP Morgan Exchange Traded, you can compare the effects of market volatilities on Walker Dunlop and JP Morgan 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 JP Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and JP Morgan.

Diversification Opportunities for Walker Dunlop and JP Morgan

WalkerJGRODiversified AwayWalkerJGRODiversified Away100%
-0.28
  Correlation Coefficient

Very good diversification

The 3 months correlation between Walker and JGRO is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and JP Morgan Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JP Morgan Exchange 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 JP Morgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JP Morgan Exchange has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and JP Morgan go up and down completely randomly.

Pair Corralation between Walker Dunlop and JP Morgan

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the JP Morgan. In addition to that, Walker Dunlop is 1.6 times more volatile than JP Morgan Exchange Traded. It trades about -0.35 of its total potential returns per unit of risk. JP Morgan Exchange Traded is currently generating about -0.14 per unit of volatility. If you would invest  8,497  in JP Morgan Exchange Traded on November 25, 2024 and sell it today you would lose (286.00) from holding JP Morgan Exchange Traded or give up 3.37% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Walker Dunlop  vs.  JP Morgan Exchange Traded

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-15-10-505
JavaScript chart by amCharts 3.21.15WD JGRO
       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
JP Morgan Exchange 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in JP Morgan Exchange Traded are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, JP Morgan is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb808182838485

Walker Dunlop and JP Morgan Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.44-2.57-1.71-0.850.00.71.412.132.853.57 0.050.100.150.200.250.30
JavaScript chart by amCharts 3.21.15WD JGRO
       Returns  

Pair Trading with Walker Dunlop and JP Morgan

The main advantage of trading using opposite Walker Dunlop and JP Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, JP Morgan 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 JP Morgan will offset losses from the drop in JP Morgan's long position.
The idea behind Walker Dunlop and JP Morgan Exchange Traded 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.
Check out your portfolio center.
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Complementary Tools

Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Commodity Directory
Find actively traded commodities issued by global exchanges
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum