Correlation Between WD 40 and Linde Plc

Can any of the company-specific risk be diversified away by investing in both WD 40 and Linde Plc 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 WD 40 and Linde Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between WD 40 Company and Linde plc Ordinary, you can compare the effects of market volatilities on WD 40 and Linde Plc 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 WD 40 with a short position of Linde Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of WD 40 and Linde Plc.

Diversification Opportunities for WD 40 and Linde Plc

-0.25

Correlation Coefficient

WD 40  Linde Plc

Very good diversification

The 3 months correlation between WDFC and Linde is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding WD 40 Company and Linde plc Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linde plc Ordinary and WD 40 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 WD 40 Company are associated (or correlated) with Linde Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linde plc Ordinary has no effect on the direction of WD 40 i.e., WD 40 and Linde Plc go up and down completely randomly.

Pair Corralation between WD 40 and Linde Plc

Given the investment horizon of 90 days WD 40 Company is expected to under-perform the Linde Plc. In addition to that, WD 40 is 1.51 times more volatile than Linde plc Ordinary. It trades about -0.17 of its total potential returns per unit of risk. Linde plc Ordinary is currently generating about 0.03 per unit of volatility. If you would invest  46,769  in Linde plc Ordinary on June 29, 2025 and sell it today you would earn a total of  672.00  from holding Linde plc Ordinary or generate 1.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

WD 40 Company  vs.  Linde plc Ordinary

WD 40 Company

Risk-Adjusted Performance

Weakest

Over the last 90 days WD 40 Company has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in October 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Linde plc Ordinary

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Linde plc Ordinary are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, Linde Plc is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with WD 40 and Linde Plc

The main advantage of trading using opposite WD 40 and Linde Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WD 40 position performs unexpectedly, Linde Plc 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 Linde Plc will offset losses from the drop in Linde Plc's long position.

The idea behind WD 40 Company and Linde plc Ordinary pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.