Correlation Between Dennys Corp and Willscot Mobile
Can any of the company-specific risk be diversified away by investing in both Dennys Corp 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 Dennys Corp and Willscot Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dennys Corp and Willscot Mobile Mini, you can compare the effects of market volatilities on Dennys Corp 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 Dennys Corp with a short position of Willscot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dennys Corp and Willscot Mobile.
Diversification Opportunities for Dennys Corp and Willscot Mobile
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Dennys and Willscot is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Dennys Corp 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 Dennys Corp 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 Dennys Corp 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 Dennys Corp i.e., Dennys Corp and Willscot Mobile go up and down completely randomly.
Pair Corralation between Dennys Corp and Willscot Mobile
Given the investment horizon of 90 days Dennys Corp is expected to under-perform the Willscot Mobile. But the stock apears to be less risky and, when comparing its historical volatility, Dennys Corp is 1.46 times less risky than Willscot Mobile. The stock trades about -0.04 of its potential returns per unit of risk. The Willscot Mobile Mini is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,888 in Willscot Mobile Mini on August 31, 2024 and sell it today you would lose (69.00) from holding Willscot Mobile Mini or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dennys Corp vs. Willscot Mobile Mini
Performance |
| Timeline |
| Dennys Corp |
| Willscot Mobile Mini |
Dennys Corp and Willscot Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dennys Corp and Willscot Mobile
The main advantage of trading using opposite Dennys Corp and Willscot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dennys Corp 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.| Dennys Corp vs. Brinker International | Dennys Corp vs. Bloomin Brands | Dennys Corp vs. Jack In The | Dennys Corp vs. BJs Restaurants |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |