Correlation Between ICF International and Willdan
Can any of the company-specific risk be diversified away by investing in both ICF International and Willdan 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 ICF International and Willdan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICF International and Willdan Group, you can compare the effects of market volatilities on ICF International and Willdan 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 ICF International with a short position of Willdan. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICF International and Willdan.
Diversification Opportunities for ICF International and Willdan
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between ICF and Willdan is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding ICF International and Willdan Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willdan Group and ICF International 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 ICF International are associated (or correlated) with Willdan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willdan Group has no effect on the direction of ICF International i.e., ICF International and Willdan go up and down completely randomly.
Pair Corralation between ICF International and Willdan
Given the investment horizon of 90 days ICF International is expected to under-perform the Willdan. In addition to that, ICF International is 1.19 times more volatile than Willdan Group. It trades about -0.32 of its total potential returns per unit of risk. Willdan Group is currently generating about -0.16 per unit of volatility. If you would invest 4,770 in Willdan Group on August 31, 2024 and sell it today you would lose (452.00) from holding Willdan Group or give up 9.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICF International vs. Willdan Group
Performance |
| Timeline |
| ICF International |
| Willdan Group |
ICF International and Willdan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICF International and Willdan
The main advantage of trading using opposite ICF International and Willdan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICF International position performs unexpectedly, Willdan 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 Willdan will offset losses from the drop in Willdan's long position.| ICF International vs. Forrester Research | ICF International vs. Huron Consulting Group | ICF International vs. Franklin Covey | ICF International vs. FTI Consulting |
| Willdan vs. CRA International | Willdan vs. Huron Consulting Group | Willdan vs. Forrester Research | Willdan vs. Resources Connection |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| CEOs Directory Screen CEOs from public companies around the world |