Correlation Between WillScot Mobile and MOBILE FACTORY
Can any of the company-specific risk be diversified away by investing in both WillScot Mobile and MOBILE FACTORY 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 MOBILE FACTORY 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 MOBILE FACTORY INC, you can compare the effects of market volatilities on WillScot Mobile and MOBILE FACTORY 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 MOBILE FACTORY. Check out your portfolio center. Please also check ongoing floating volatility patterns of WillScot Mobile and MOBILE FACTORY.
Diversification Opportunities for WillScot Mobile and MOBILE FACTORY
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between WillScot and MOBILE is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding WillScot Mobile Mini and MOBILE FACTORY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOBILE FACTORY INC 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 MOBILE FACTORY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOBILE FACTORY INC has no effect on the direction of WillScot Mobile i.e., WillScot Mobile and MOBILE FACTORY go up and down completely randomly.
Pair Corralation between WillScot Mobile and MOBILE FACTORY
Assuming the 90 days trading horizon WillScot Mobile is expected to generate 8.44 times less return on investment than MOBILE FACTORY. In addition to that, WillScot Mobile is 1.16 times more volatile than MOBILE FACTORY INC. It trades about 0.01 of its total potential returns per unit of risk. MOBILE FACTORY INC is currently generating about 0.1 per unit of volatility. If you would invest 396.00 in MOBILE FACTORY INC on November 3, 2024 and sell it today you would earn a total of 199.00 from holding MOBILE FACTORY INC or generate 50.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WillScot Mobile Mini vs. MOBILE FACTORY INC
Performance |
| Timeline |
| WillScot Mobile Mini |
| MOBILE FACTORY INC |
WillScot Mobile and MOBILE FACTORY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WillScot Mobile and MOBILE FACTORY
The main advantage of trading using opposite WillScot Mobile and MOBILE FACTORY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WillScot Mobile position performs unexpectedly, MOBILE FACTORY 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 MOBILE FACTORY will offset losses from the drop in MOBILE FACTORY's long position.| WillScot Mobile vs. United Rentals | WillScot Mobile vs. Ashtead Group plc | WillScot Mobile vs. AMERCO | WillScot Mobile vs. Avis Budget Group |
| MOBILE FACTORY vs. UNIVMUSIC GRPADR050 | MOBILE FACTORY vs. Performance Food Group | MOBILE FACTORY vs. GEAR4MUSIC LS 10 | MOBILE FACTORY vs. Carnegie Clean Energy |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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