Correlation Between Willdan and Concrete Pumping
Can any of the company-specific risk be diversified away by investing in both Willdan and Concrete Pumping 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 Willdan and Concrete Pumping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Willdan Group and Concrete Pumping Holdings, you can compare the effects of market volatilities on Willdan and Concrete Pumping 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 Willdan with a short position of Concrete Pumping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willdan and Concrete Pumping.
Diversification Opportunities for Willdan and Concrete Pumping
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Willdan and Concrete is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Willdan Group and Concrete Pumping Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concrete Pumping Holdings and Willdan 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 Willdan Group are associated (or correlated) with Concrete Pumping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concrete Pumping Holdings has no effect on the direction of Willdan i.e., Willdan and Concrete Pumping go up and down completely randomly.
Pair Corralation between Willdan and Concrete Pumping
Given the investment horizon of 90 days Willdan Group is expected to under-perform the Concrete Pumping. But the stock apears to be less risky and, when comparing its historical volatility, Willdan Group is 1.57 times less risky than Concrete Pumping. The stock trades about -0.36 of its potential returns per unit of risk. The Concrete Pumping Holdings is currently generating about -0.19 of returns per unit of risk over similar time horizon. If you would invest 726.00 in Concrete Pumping Holdings on October 9, 2024 and sell it today you would lose (64.00) from holding Concrete Pumping Holdings or give up 8.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Willdan Group vs. Concrete Pumping Holdings
Performance |
| Timeline |
| Willdan Group |
| Concrete Pumping Holdings |
Willdan and Concrete Pumping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willdan and Concrete Pumping
The main advantage of trading using opposite Willdan and Concrete Pumping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willdan position performs unexpectedly, Concrete Pumping 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 Concrete Pumping will offset losses from the drop in Concrete Pumping's long position.| Willdan vs. SNC Lavalin Group | Willdan vs. WSP Global | Willdan vs. Comfort Systems USA | Willdan vs. MYR Group |
| Concrete Pumping vs. ACS Actividades de | Concrete Pumping vs. ACS Actividades De | Concrete Pumping vs. Badger Infrastructure Solutions | Concrete Pumping vs. MYR Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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