Correlation Between Willdan and Bouygues
Can any of the company-specific risk be diversified away by investing in both Willdan and Bouygues 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 Bouygues into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Willdan Group and Bouygues SA ADR, you can compare the effects of market volatilities on Willdan and Bouygues 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 Bouygues. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willdan and Bouygues.
Diversification Opportunities for Willdan and Bouygues
Modest diversification
The 3 months correlation between Willdan and Bouygues is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Willdan Group and Bouygues SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bouygues SA ADR 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 Bouygues. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bouygues SA ADR has no effect on the direction of Willdan i.e., Willdan and Bouygues go up and down completely randomly.
Pair Corralation between Willdan and Bouygues
Given the investment horizon of 90 days Willdan Group is expected to under-perform the Bouygues. In addition to that, Willdan is 1.41 times more volatile than Bouygues SA ADR. It trades about -0.24 of its total potential returns per unit of risk. Bouygues SA ADR is currently generating about 0.3 per unit of volatility. If you would invest 588.00 in Bouygues SA ADR on November 4, 2024 and sell it today you would earn a total of 45.00 from holding Bouygues SA ADR or generate 7.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Willdan Group vs. Bouygues SA ADR
Performance |
| Timeline |
| Willdan Group |
| Bouygues SA ADR |
Willdan and Bouygues Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willdan and Bouygues
The main advantage of trading using opposite Willdan and Bouygues positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willdan position performs unexpectedly, Bouygues 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 Bouygues will offset losses from the drop in Bouygues' long position.| Willdan vs. SNC Lavalin Group | Willdan vs. WSP Global | Willdan vs. Comfort Systems USA | Willdan vs. MYR Group |
| Bouygues vs. SNC Lavalin Group | Bouygues vs. WSP Global | Bouygues vs. Willdan Group | Bouygues vs. Comfort Systems USA |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |