Correlation Between China Aircraft and Willscot Mobile
Can any of the company-specific risk be diversified away by investing in both China Aircraft 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 China Aircraft and Willscot Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Aircraft Leasing and Willscot Mobile Mini, you can compare the effects of market volatilities on China Aircraft 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 China Aircraft with a short position of Willscot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aircraft and Willscot Mobile.
Diversification Opportunities for China Aircraft and Willscot Mobile
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Willscot is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding China Aircraft Leasing 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 China Aircraft 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 China Aircraft Leasing 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 China Aircraft i.e., China Aircraft and Willscot Mobile go up and down completely randomly.
Pair Corralation between China Aircraft and Willscot Mobile
If you would invest 40.00 in China Aircraft Leasing on August 24, 2024 and sell it today you would earn a total of 0.00 from holding China Aircraft Leasing or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Aircraft Leasing vs. Willscot Mobile Mini
Performance |
| Timeline |
| China Aircraft Leasing |
| Willscot Mobile Mini |
China Aircraft and Willscot Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aircraft and Willscot Mobile
The main advantage of trading using opposite China Aircraft and Willscot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aircraft 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.| China Aircraft vs. United Rentals | China Aircraft vs. Ashtead Gro | China Aircraft vs. AerCap Holdings NV | China Aircraft vs. Fortress Transp Infra |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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