Correlation Between WillScot Mobile and CanSino Biologics
Can any of the company-specific risk be diversified away by investing in both WillScot Mobile and CanSino Biologics 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 CanSino Biologics 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 CanSino Biologics, you can compare the effects of market volatilities on WillScot Mobile and CanSino Biologics 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 CanSino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of WillScot Mobile and CanSino Biologics.
Diversification Opportunities for WillScot Mobile and CanSino Biologics
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between WillScot and CanSino is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding WillScot Mobile Mini and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics 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 CanSino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CanSino Biologics has no effect on the direction of WillScot Mobile i.e., WillScot Mobile and CanSino Biologics go up and down completely randomly.
Pair Corralation between WillScot Mobile and CanSino Biologics
Assuming the 90 days trading horizon WillScot Mobile is expected to generate 6.84 times less return on investment than CanSino Biologics. But when comparing it to its historical volatility, WillScot Mobile Mini is 1.87 times less risky than CanSino Biologics. It trades about 0.05 of its potential returns per unit of risk. CanSino Biologics is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 228.00 in CanSino Biologics on September 12, 2024 and sell it today you would earn a total of 166.00 from holding CanSino Biologics or generate 72.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
WillScot Mobile Mini vs. CanSino Biologics
Performance |
| Timeline |
| WillScot Mobile Mini |
| CanSino Biologics |
WillScot Mobile and CanSino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WillScot Mobile and CanSino Biologics
The main advantage of trading using opposite WillScot Mobile and CanSino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WillScot Mobile position performs unexpectedly, CanSino Biologics 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 CanSino Biologics will offset losses from the drop in CanSino Biologics' long position.| WillScot Mobile vs. United Rentals | WillScot Mobile vs. Superior Plus Corp | WillScot Mobile vs. SIVERS SEMICONDUCTORS AB | WillScot Mobile vs. Norsk Hydro ASA |
| CanSino Biologics vs. JSC Halyk bank | CanSino Biologics vs. MAGNUM MINING EXP | CanSino Biologics vs. EPSILON HEALTHCARE LTD | CanSino Biologics vs. Perseus Mining Limited |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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