Correlation Between Wilmington Global and Walthausen Small
Can any of the company-specific risk be diversified away by investing in both Wilmington Global and Walthausen Small 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 Wilmington Global and Walthausen Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilmington Global Alpha and Walthausen Small Cap, you can compare the effects of market volatilities on Wilmington Global and Walthausen Small 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 Wilmington Global with a short position of Walthausen Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilmington Global and Walthausen Small.
Diversification Opportunities for Wilmington Global and Walthausen Small
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wilmington and Walthausen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Wilmington Global Alpha and Walthausen Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walthausen Small Cap and Wilmington Global 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 Wilmington Global Alpha are associated (or correlated) with Walthausen Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walthausen Small Cap has no effect on the direction of Wilmington Global i.e., Wilmington Global and Walthausen Small go up and down completely randomly.
Pair Corralation between Wilmington Global and Walthausen Small
Assuming the 90 days horizon Wilmington Global is expected to generate 7.24 times less return on investment than Walthausen Small. But when comparing it to its historical volatility, Wilmington Global Alpha is 6.12 times less risky than Walthausen Small. It trades about 0.34 of its potential returns per unit of risk. Walthausen Small Cap is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 1,547 in Walthausen Small Cap on September 1, 2024 and sell it today you would earn a total of 204.00 from holding Walthausen Small Cap or generate 13.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wilmington Global Alpha vs. Walthausen Small Cap
Performance |
| Timeline |
| Wilmington Global Alpha |
| Walthausen Small Cap |
Wilmington Global and Walthausen Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilmington Global and Walthausen Small
The main advantage of trading using opposite Wilmington Global and Walthausen Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilmington Global position performs unexpectedly, Walthausen Small 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 Walthausen Small will offset losses from the drop in Walthausen Small's long position.| Wilmington Global vs. Allianzgi Technology Fund | Wilmington Global vs. Columbia Global Technology | Wilmington Global vs. Biotechnology Fund Class | Wilmington Global vs. Science Technology Fund |
| Walthausen Small vs. Amg Southernsun Small | Walthausen Small vs. Wasatch Emerging Markets | Walthausen Small vs. Hodges Small Cap | Walthausen Small vs. Intrepid Endurance Fund |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stocks Directory Find actively traded stocks across global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |