Correlation Between Highlight Communications and WillScot Mobile
Can any of the company-specific risk be diversified away by investing in both Highlight Communications 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 Highlight Communications and WillScot Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highlight Communications AG and WillScot Mobile Mini, you can compare the effects of market volatilities on Highlight Communications 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 Highlight Communications with a short position of WillScot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highlight Communications and WillScot Mobile.
Diversification Opportunities for Highlight Communications and WillScot Mobile
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Highlight and WillScot is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Highlight Communications AG 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 Highlight Communications 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 Highlight Communications AG 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 Highlight Communications i.e., Highlight Communications and WillScot Mobile go up and down completely randomly.
Pair Corralation between Highlight Communications and WillScot Mobile
Assuming the 90 days trading horizon Highlight Communications AG is expected to generate 1.26 times more return on investment than WillScot Mobile. However, Highlight Communications is 1.26 times more volatile than WillScot Mobile Mini. It trades about 0.13 of its potential returns per unit of risk. WillScot Mobile Mini is currently generating about 0.05 per unit of risk. If you would invest 95.00 in Highlight Communications AG on October 31, 2024 and sell it today you would earn a total of 44.00 from holding Highlight Communications AG or generate 46.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highlight Communications AG vs. WillScot Mobile Mini
Performance |
| Timeline |
| Highlight Communications |
| WillScot Mobile Mini |
Highlight Communications and WillScot Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highlight Communications and WillScot Mobile
The main advantage of trading using opposite Highlight Communications and WillScot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highlight Communications 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.| Highlight Communications vs. HAVERTY FURNITURE A | Highlight Communications vs. Autohome ADR | Highlight Communications vs. HOME DEPOT | Highlight Communications vs. INVITATION HOMES DL |
| WillScot Mobile vs. TRAVEL LEISURE DL 01 | WillScot Mobile vs. GOME Retail Holdings | WillScot Mobile vs. Burlington Stores | WillScot Mobile vs. LG Display Co |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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