Correlation Between PROSIEBENSAT1 MEDIADR4/ and WillScot Mobile
Can any of the company-specific risk be diversified away by investing in both PROSIEBENSAT1 MEDIADR4/ 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 PROSIEBENSAT1 MEDIADR4/ and WillScot Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PROSIEBENSAT1 MEDIADR4 and WillScot Mobile Mini, you can compare the effects of market volatilities on PROSIEBENSAT1 MEDIADR4/ 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 PROSIEBENSAT1 MEDIADR4/ with a short position of WillScot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of PROSIEBENSAT1 MEDIADR4/ and WillScot Mobile.
Diversification Opportunities for PROSIEBENSAT1 MEDIADR4/ and WillScot Mobile
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PROSIEBENSAT1 and WillScot is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding PROSIEBENSAT1 MEDIADR4 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 PROSIEBENSAT1 MEDIADR4/ 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 PROSIEBENSAT1 MEDIADR4 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 PROSIEBENSAT1 MEDIADR4/ i.e., PROSIEBENSAT1 MEDIADR4/ and WillScot Mobile go up and down completely randomly.
Pair Corralation between PROSIEBENSAT1 MEDIADR4/ and WillScot Mobile
Assuming the 90 days trading horizon PROSIEBENSAT1 MEDIADR4 is expected to under-perform the WillScot Mobile. But the stock apears to be less risky and, when comparing its historical volatility, PROSIEBENSAT1 MEDIADR4 is 1.34 times less risky than WillScot Mobile. The stock trades about -0.07 of its potential returns per unit of risk. The WillScot Mobile Mini is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,260 in WillScot Mobile Mini on September 13, 2024 and sell it today you would earn a total of 360.00 from holding WillScot Mobile Mini or generate 11.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PROSIEBENSAT1 MEDIADR4 vs. WillScot Mobile Mini
Performance |
| Timeline |
| PROSIEBENSAT1 MEDIADR4/ |
| WillScot Mobile Mini |
PROSIEBENSAT1 MEDIADR4/ and WillScot Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PROSIEBENSAT1 MEDIADR4/ and WillScot Mobile
The main advantage of trading using opposite PROSIEBENSAT1 MEDIADR4/ and WillScot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PROSIEBENSAT1 MEDIADR4/ 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.| PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc | PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc | PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc | PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc |
| WillScot Mobile vs. United Rentals | WillScot Mobile vs. Superior Plus Corp | WillScot Mobile vs. SIVERS SEMICONDUCTORS AB | WillScot Mobile vs. Norsk Hydro ASA |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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