Correlation Between Sixt Leasing and WillScot Mobile
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing 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 Sixt Leasing and WillScot Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt Leasing SE and WillScot Mobile Mini, you can compare the effects of market volatilities on Sixt Leasing 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 Sixt Leasing with a short position of WillScot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and WillScot Mobile.
Diversification Opportunities for Sixt Leasing and WillScot Mobile
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sixt and WillScot is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE 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 Sixt Leasing 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 Sixt Leasing SE 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 Sixt Leasing i.e., Sixt Leasing and WillScot Mobile go up and down completely randomly.
Pair Corralation between Sixt Leasing and WillScot Mobile
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the WillScot Mobile. But the stock apears to be less risky and, when comparing its historical volatility, Sixt Leasing SE is 1.4 times less risky than WillScot Mobile. The stock trades about -0.02 of its potential returns per unit of risk. The WillScot Mobile Mini is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 4,260 in WillScot Mobile Mini on September 5, 2024 and sell it today you would lose (660.00) from holding WillScot Mobile Mini or give up 15.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sixt Leasing SE vs. WillScot Mobile Mini
Performance |
| Timeline |
| Sixt Leasing SE |
| WillScot Mobile Mini |
Sixt Leasing and WillScot Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and WillScot Mobile
The main advantage of trading using opposite Sixt Leasing and WillScot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing 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.| Sixt Leasing vs. HANOVER INSURANCE | Sixt Leasing vs. Universal Insurance Holdings | Sixt Leasing vs. G8 EDUCATION | Sixt Leasing vs. Selective Insurance Group |
| WillScot Mobile vs. Summit Hotel Properties | WillScot Mobile vs. Eidesvik Offshore ASA | WillScot Mobile vs. SOLSTAD OFFSHORE NK | 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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