Watsco Correlations

WSO Stock

USD 471.53 0.78 0.17%

The current 90-days correlation between Watsco Inc and Fastenal Company is 0.53 (i.e., Very weak diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Watsco moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Watsco Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

Watsco Correlation With Market

Weak diversification

The correlation between Watsco Inc and DJI is 0.35 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Watsco Inc and DJI in the same portfolio, assuming nothing else is changed.

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Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Watsco Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state.

Moving against Watsco Stock

0.51	FERG	Ferguson Plc	Pair Corr
0.51	AP	Ampco Pittsburgh	Pair Corr
0.48	AL	Air Lease	Pair Corr
0.46	WCC-PA	WESCO International	Pair Corr
0.43	CNM	Core Main	Pair Corr
0.39	GIC	Global Industrial Earnings Call This Week	Pair Corr
0.36	BA	Boeing	Pair Corr
0.31	AZ	A2Z Smart Technologies	Pair Corr
0.57	CW	Curtiss Wright	Pair Corr
0.56	DY	Dycom Industries	Pair Corr
0.51	GE	GE Aerospace Earnings Call Tomorrow	Pair Corr
0.49	BW	Babcock Wilcox Enter	Pair Corr
0.49	DE	Deere Company	Pair Corr
0.49	KE	Kimball Electronics	Pair Corr
0.48	FC	Franklin Covey	Pair Corr
0.47	OP	Oceanpal	Pair Corr
0.46	CR	Crane Company Earnings Call This Week	Pair Corr
0.41	BV	BrightView Holdings	Pair Corr
0.41	BZ	Kanzhun Ltd ADR	Pair Corr
0.38	CP	Canadian Pacific Railway Earnings Call This Week	Pair Corr
0.35	PL	Planet Labs PBC	Pair Corr
0.34	FA	First Advantage Corp	Pair Corr

Related Correlations Analysis

	FAST	SITE	FERG	GWW	POOL	MSM	AIT	CNM	DXPE
FAST		0.61	0.76	0.17	-0.07	0.85	0.82	0.8	0.54	FAST
SITE	0.61		0.67	0.41	0.37	0.75	0.65	0.76	0.56	SITE
FERG	0.76	0.67		0.23	-0.16	0.84	0.59	0.95	0.22	FERG
GWW	0.17	0.41	0.23		0.36	0.17	-0.01	0.25	0.02	GWW
POOL	-0.07	0.37	-0.16	0.36		0.04	0.02	-0.09	0.15	POOL
MSM	0.85	0.75	0.84	0.17	0.04		0.79	0.89	0.5	MSM
AIT	0.82	0.65	0.59	-0.01	0.02	0.79		0.72	0.72	AIT
CNM	0.8	0.76	0.95	0.25	-0.09	0.89	0.72		0.43	CNM
DXPE	0.54	0.56	0.22	0.02	0.15	0.5	0.72	0.43		DXPE
	FAST	SITE	FERG	GWW	POOL	MSM	AIT	CNM	DXPE

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

CNM	+ 0.95	FERG
CNM	+ 0.89	MSM
MSM	+ 0.85	FAST
MSM	+ 0.84	FERG
AIT	+ 0.82	FAST
CNM	+ 0.8	FAST

High negative correlations

POOL	- 0.16	FERG
CNM	- 0.09	POOL
POOL	- 0.07	FAST
AIT	- 0.01	GWW

Risk-Adjusted Indicators

There is a big difference between Watsco Stock performing well and Watsco Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Watsco's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
FAST	0.97	0.10	0.05	0.25	1.10	(1.05)	2.05	(1.59)	7.13
SITE	1.69	(0.07)	0.00	0.08	1.85	(1.82)	4.20	(3.45)	10.11
FERG	1.30	0.34	0.32	0.50	0.54	(1.67)	3.17	(1.87)	18.95
GWW	0.98	(0.07)	(0.07)	0.05	1.17	(1.01)	2.05	(1.72)	5.61
POOL	1.54	(0.20)	0.00	(0.04)	0.00	0.00	3.41	(3.56)	10.08
MSM	1.22	0.05	0.05	0.18	1.04	(1.45)	3.43	(1.89)	8.73
AIT	1.62	0.03	0.05	0.15	1.85	(1.85)	3.60	(3.40)	10.50
CNM	1.41	0.21	0.16	0.32	1.11	(1.66)	3.20	(2.21)	12.44
DXPE	1.81	0.21	0.11	0.32	1.85	(2.01)	3.81	(2.87)	9.85

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