Correlation Between Geely Automobile and WillScot Mobile
Can any of the company-specific risk be diversified away by investing in both Geely Automobile 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 Geely Automobile and WillScot Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geely Automobile Holdings and WillScot Mobile Mini, you can compare the effects of market volatilities on Geely Automobile 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 Geely Automobile with a short position of WillScot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and WillScot Mobile.
Diversification Opportunities for Geely Automobile and WillScot Mobile
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Geely and WillScot is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings 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 Geely Automobile 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 Geely Automobile Holdings 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 Geely Automobile i.e., Geely Automobile and WillScot Mobile go up and down completely randomly.
Pair Corralation between Geely Automobile and WillScot Mobile
Assuming the 90 days horizon Geely Automobile Holdings is expected to under-perform the WillScot Mobile. In addition to that, Geely Automobile is 1.24 times more volatile than WillScot Mobile Mini. It trades about -0.17 of its total potential returns per unit of risk. WillScot Mobile Mini is currently generating about 0.44 per unit of volatility. If you would invest 3,200 in WillScot Mobile Mini on October 23, 2024 and sell it today you would earn a total of 320.00 from holding WillScot Mobile Mini or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geely Automobile Holdings vs. WillScot Mobile Mini
Performance |
| Timeline |
| Geely Automobile Holdings |
| WillScot Mobile Mini |
Geely Automobile and WillScot Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and WillScot Mobile
The main advantage of trading using opposite Geely Automobile and WillScot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile 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.| Geely Automobile vs. WisdomTree Investments | Geely Automobile vs. Casio Computer CoLtd | Geely Automobile vs. SEI INVESTMENTS | Geely Automobile vs. MOVIE GAMES SA |
| WillScot Mobile vs. National Health Investors | WillScot Mobile vs. SUN LIFE FINANCIAL | WillScot Mobile vs. OPKO HEALTH | WillScot Mobile vs. WT OFFSHORE |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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