Correlation Between WillScot Mobile and Bank of America
Can any of the company-specific risk be diversified away by investing in both WillScot Mobile and Bank of America 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 Bank of America 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 Verizon Communications, you can compare the effects of market volatilities on WillScot Mobile and Bank of America 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 Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of WillScot Mobile and Bank of America.
Diversification Opportunities for WillScot Mobile and Bank of America
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between WillScot and Bank is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding WillScot Mobile Mini and Verizon Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verizon Communications 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 Bank of America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verizon Communications has no effect on the direction of WillScot Mobile i.e., WillScot Mobile and Bank of America go up and down completely randomly.
Pair Corralation between WillScot Mobile and Bank of America
Assuming the 90 days trading horizon WillScot Mobile Mini is expected to generate 3.28 times more return on investment than Bank of America. However, WillScot Mobile is 3.28 times more volatile than Verizon Communications. It trades about 0.2 of its potential returns per unit of risk. Verizon Communications is currently generating about 0.26 per unit of risk. If you would invest 3,060 in WillScot Mobile Mini on September 1, 2024 and sell it today you would earn a total of 520.00 from holding WillScot Mobile Mini or generate 16.99% 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. Verizon Communications
Performance |
| Timeline |
| WillScot Mobile Mini |
| Verizon Communications |
WillScot Mobile and Bank of America Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WillScot Mobile and Bank of America
The main advantage of trading using opposite WillScot Mobile and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WillScot Mobile position performs unexpectedly, Bank of America 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 Bank of America will offset losses from the drop in Bank of America's long position.| WillScot Mobile vs. COPLAND ROAD CAPITAL | WillScot Mobile vs. SLR Investment Corp | WillScot Mobile vs. Air Transport Services | WillScot Mobile vs. REGAL ASIAN INVESTMENTS |
| Bank of America vs. Regions Financial | Bank of America vs. Shin Etsu Chemical Co | Bank of America vs. Sumitomo Chemical | Bank of America vs. CHEMICAL INDUSTRIES |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |