Correlation Between Willdan and Staffing 360
Can any of the company-specific risk be diversified away by investing in both Willdan and Staffing 360 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 Staffing 360 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Willdan Group and Staffing 360 Solutions, you can compare the effects of market volatilities on Willdan and Staffing 360 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 Staffing 360. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willdan and Staffing 360.
Diversification Opportunities for Willdan and Staffing 360
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Willdan and Staffing is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Willdan Group and Staffing 360 Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Staffing 360 Solutions 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 Staffing 360. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Staffing 360 Solutions has no effect on the direction of Willdan i.e., Willdan and Staffing 360 go up and down completely randomly.
Pair Corralation between Willdan and Staffing 360
Given the investment horizon of 90 days Willdan Group is expected to under-perform the Staffing 360. But the stock apears to be less risky and, when comparing its historical volatility, Willdan Group is 4.49 times less risky than Staffing 360. The stock trades about -0.14 of its potential returns per unit of risk. The Staffing 360 Solutions is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 230.00 in Staffing 360 Solutions on November 2, 2024 and sell it today you would earn a total of 105.00 from holding Staffing 360 Solutions or generate 45.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Willdan Group vs. Staffing 360 Solutions
Performance |
| Timeline |
| Willdan Group |
| Staffing 360 Solutions |
Willdan and Staffing 360 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willdan and Staffing 360
The main advantage of trading using opposite Willdan and Staffing 360 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willdan position performs unexpectedly, Staffing 360 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 Staffing 360 will offset losses from the drop in Staffing 360's long position.| Willdan vs. SNC Lavalin Group | Willdan vs. WSP Global | Willdan vs. Comfort Systems USA | Willdan vs. MYR Group |
| Staffing 360 vs. Kelly Services A | Staffing 360 vs. Mastech Holdings | Staffing 360 vs. Kforce Inc | Staffing 360 vs. Hudson Global |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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