Correlation Between WillScot Mobile and Hua Hong
Can any of the company-specific risk be diversified away by investing in both WillScot Mobile and Hua Hong 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 WillScot Mobile and Hua Hong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WillScot Mobile Mini and Hua Hong Semiconductor, you can compare the effects of market volatilities on WillScot Mobile and Hua Hong 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 WillScot Mobile with a short position of Hua Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of WillScot Mobile and Hua Hong.
Diversification Opportunities for WillScot Mobile and Hua Hong
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WillScot and Hua is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding WillScot Mobile Mini and Hua Hong Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Hong Semiconductor and WillScot Mobile 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 WillScot Mobile Mini are associated (or correlated) with Hua Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Hong Semiconductor has no effect on the direction of WillScot Mobile i.e., WillScot Mobile and Hua Hong go up and down completely randomly.
Pair Corralation between WillScot Mobile and Hua Hong
Assuming the 90 days trading horizon WillScot Mobile Mini is expected to generate 0.62 times more return on investment than Hua Hong. However, WillScot Mobile Mini is 1.62 times less risky than Hua Hong. It trades about 0.01 of its potential returns per unit of risk. Hua Hong Semiconductor is currently generating about 0.0 per unit of risk. If you would invest 3,660 in WillScot Mobile Mini on November 3, 2024 and sell it today you would lose (120.00) from holding WillScot Mobile Mini or give up 3.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WillScot Mobile Mini vs. Hua Hong Semiconductor
Performance |
| Timeline |
| WillScot Mobile Mini |
| Hua Hong Semiconductor |
WillScot Mobile and Hua Hong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WillScot Mobile and Hua Hong
The main advantage of trading using opposite WillScot Mobile and Hua Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WillScot Mobile position performs unexpectedly, Hua Hong 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 Hua Hong will offset losses from the drop in Hua Hong's long position.| WillScot Mobile vs. United Rentals | WillScot Mobile vs. Ashtead Group plc | WillScot Mobile vs. AMERCO | WillScot Mobile vs. Avis Budget Group |
| Hua Hong vs. PLAYMATES TOYS | Hua Hong vs. QINGCI GAMES INC | Hua Hong vs. Tower Semiconductor | Hua Hong vs. ON SEMICONDUCTOR |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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