Correlation Between Willdan and Ameresco

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

By analyzing existing cross correlation between Willdan Group and Ameresco, you can compare the effects of market volatilities on Willdan and Ameresco 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 Ameresco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willdan and Ameresco.

Diversification Opportunities for Willdan and Ameresco

0.9

Correlation Coefficient

Willdan  Ameresco

Almost no diversification

The 3 months correlation between Willdan and Ameresco is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Willdan Group and Ameresco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameresco 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 Ameresco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameresco has no effect on the direction of Willdan i.e., Willdan and Ameresco go up and down completely randomly.

Pair Corralation between Willdan and Ameresco

Given the investment horizon of 90 days Willdan Group is expected to generate 0.49 times more return on investment than Ameresco. However, Willdan Group is 2.03 times less risky than Ameresco. It trades about 0.61 of its potential returns per unit of risk. Ameresco is currently generating about 0.14 per unit of risk. If you would invest  3,961  in Willdan Group on May 5, 2025 and sell it today you would earn a total of  4,440  from holding Willdan Group or generate 112.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Willdan Group  vs.  Ameresco

Willdan Group

Risk-Adjusted Performance

Excellent

Compared to the overall equity markets, risk-adjusted returns on investments in Willdan Group are ranked lower than 48 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile fundamental indicators, Willdan displayed solid returns over the last few months and may actually be approaching a breakup point.

Ameresco

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ameresco are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Ameresco exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Willdan and Ameresco

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

The idea behind Willdan Group and Ameresco 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.