Correlation Between WillScot Mobile and ASML Holding
Can any of the company-specific risk be diversified away by investing in both WillScot Mobile and ASML Holding 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 ASML Holding 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 ASML Holding NV, you can compare the effects of market volatilities on WillScot Mobile and ASML Holding 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 ASML Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of WillScot Mobile and ASML Holding.
Diversification Opportunities for WillScot Mobile and ASML Holding
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between WillScot and ASML is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding WillScot Mobile Mini and ASML Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASML Holding NV 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 ASML Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASML Holding NV has no effect on the direction of WillScot Mobile i.e., WillScot Mobile and ASML Holding go up and down completely randomly.
Pair Corralation between WillScot Mobile and ASML Holding
Assuming the 90 days trading horizon WillScot Mobile Mini is expected to under-perform the ASML Holding. But the stock apears to be less risky and, when comparing its historical volatility, WillScot Mobile Mini is 1.02 times less risky than ASML Holding. The stock trades about 0.0 of its potential returns per unit of risk. The ASML Holding NV is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 57,832 in ASML Holding NV on September 3, 2024 and sell it today you would earn a total of 7,358 from holding ASML Holding NV or generate 12.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WillScot Mobile Mini vs. ASML Holding NV
Performance |
| Timeline |
| WillScot Mobile Mini |
| ASML Holding NV |
WillScot Mobile and ASML Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WillScot Mobile and ASML Holding
The main advantage of trading using opposite WillScot Mobile and ASML Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WillScot Mobile position performs unexpectedly, ASML Holding 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 ASML Holding will offset losses from the drop in ASML Holding's long position.The idea behind WillScot Mobile Mini and ASML Holding NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ASML Holding vs. Sanyo Chemical Industries | ASML Holding vs. SEKISUI CHEMICAL | ASML Holding vs. TIANDE CHEMICAL | ASML Holding vs. WillScot Mobile Mini |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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