Correlation Between Cumulus Media and Willscot Mobile
Can any of the company-specific risk be diversified away by investing in both Cumulus Media 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 Cumulus Media and Willscot Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cumulus Media Class and Willscot Mobile Mini, you can compare the effects of market volatilities on Cumulus Media 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 Cumulus Media with a short position of Willscot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cumulus Media and Willscot Mobile.
Diversification Opportunities for Cumulus Media and Willscot Mobile
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cumulus and Willscot is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cumulus Media Class 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 Cumulus Media 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 Cumulus Media Class 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 Cumulus Media i.e., Cumulus Media and Willscot Mobile go up and down completely randomly.
Pair Corralation between Cumulus Media and Willscot Mobile
Given the investment horizon of 90 days Cumulus Media Class is expected to under-perform the Willscot Mobile. In addition to that, Cumulus Media is 1.33 times more volatile than Willscot Mobile Mini. It trades about -0.32 of its total potential returns per unit of risk. Willscot Mobile Mini is currently generating about -0.05 per unit of volatility. If you would invest 3,897 in Willscot Mobile Mini on August 26, 2024 and sell it today you would lose (267.00) from holding Willscot Mobile Mini or give up 6.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cumulus Media Class vs. Willscot Mobile Mini
Performance |
| Timeline |
| Cumulus Media Class |
| Willscot Mobile Mini |
Cumulus Media and Willscot Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cumulus Media and Willscot Mobile
The main advantage of trading using opposite Cumulus Media and Willscot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cumulus Media 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.| Cumulus Media vs. E W Scripps | Cumulus Media vs. Gray Television | Cumulus Media vs. ProSiebenSat1 Media AG | Cumulus Media vs. RTL Group SA |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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