Correlation Between Willdan and CleanCore Solutions

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

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

Diversification Opportunities for Willdan and CleanCore Solutions

0.71

Correlation Coefficient

Willdan  CleanCore Solutions

Poor diversification

The 3 months correlation between Willdan and CleanCore is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Willdan Group and CleanCore Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanCore 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 CleanCore Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CleanCore Solutions has no effect on the direction of Willdan i.e., Willdan and CleanCore Solutions go up and down completely randomly.

Pair Corralation between Willdan and CleanCore Solutions

Given the investment horizon of 90 days Willdan is expected to generate 1.79 times less return on investment than CleanCore Solutions. But when comparing it to its historical volatility, Willdan Group is 4.66 times less risky than CleanCore Solutions. It trades about 0.64 of its potential returns per unit of risk. CleanCore Solutions is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  133.00  in CleanCore Solutions on May 1, 2025 and sell it today you would earn a total of  277.00  from holding CleanCore Solutions or generate 208.27% return on investment over 90 days.

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

Willdan Group  vs.  CleanCore Solutions

Willdan Group

Risk-Adjusted Performance

Excellent

Compared to the overall equity markets, risk-adjusted returns on investments in Willdan Group are ranked lower than 50 (%) 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.

CleanCore Solutions

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CleanCore Solutions are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, CleanCore Solutions exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Willdan and CleanCore Solutions

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

The idea behind Willdan Group and CleanCore Solutions 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.