Correlation Between AerCap Holdings and Willscot Mobile
Can any of the company-specific risk be diversified away by investing in both AerCap Holdings and Willscot Mobile 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 AerCap Holdings and Willscot Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerCap Holdings NV and Willscot Mobile Mini, you can compare the effects of market volatilities on AerCap Holdings and Willscot Mobile 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 AerCap Holdings with a short position of Willscot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerCap Holdings and Willscot Mobile.
Diversification Opportunities for AerCap Holdings and Willscot Mobile
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between AerCap and Willscot is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding AerCap Holdings NV and Willscot Mobile Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willscot Mobile Mini and AerCap Holdings 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 AerCap Holdings NV are associated (or correlated) with Willscot Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willscot Mobile Mini has no effect on the direction of AerCap Holdings i.e., AerCap Holdings and Willscot Mobile go up and down completely randomly.
Pair Corralation between AerCap Holdings and Willscot Mobile
Considering the 90-day investment horizon AerCap Holdings NV is expected to generate 0.28 times more return on investment than Willscot Mobile. However, AerCap Holdings NV is 3.62 times less risky than Willscot Mobile. It trades about 0.09 of its potential returns per unit of risk. Willscot Mobile Mini is currently generating about 0.0 per unit of risk. If you would invest 9,584 in AerCap Holdings NV on August 27, 2024 and sell it today you would earn a total of 219.00 from holding AerCap Holdings NV or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AerCap Holdings NV vs. Willscot Mobile Mini
Performance |
| Timeline |
| AerCap Holdings NV |
| Willscot Mobile Mini |
AerCap Holdings and Willscot Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerCap Holdings and Willscot Mobile
The main advantage of trading using opposite AerCap Holdings and Willscot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerCap Holdings position performs unexpectedly, Willscot Mobile 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 Willscot Mobile will offset losses from the drop in Willscot Mobile's long position.| AerCap Holdings vs. Ryder System | AerCap Holdings vs. Alta Equipment Group | AerCap Holdings vs. PROG Holdings | AerCap Holdings vs. GATX Corporation |
| Willscot Mobile vs. HE Equipment Services | Willscot Mobile vs. GATX Corporation | Willscot Mobile vs. McGrath RentCorp | Willscot Mobile vs. Alta Equipment Group |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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