Correlation Between WillScot Mobile and SBI Insurance
Can any of the company-specific risk be diversified away by investing in both WillScot Mobile and SBI Insurance 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 SBI Insurance 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 SBI Insurance Group, you can compare the effects of market volatilities on WillScot Mobile and SBI Insurance 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 SBI Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of WillScot Mobile and SBI Insurance.
Diversification Opportunities for WillScot Mobile and SBI Insurance
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between WillScot and SBI is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding WillScot Mobile Mini and SBI Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Insurance Group 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 SBI Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Insurance Group has no effect on the direction of WillScot Mobile i.e., WillScot Mobile and SBI Insurance go up and down completely randomly.
Pair Corralation between WillScot Mobile and SBI Insurance
Assuming the 90 days trading horizon WillScot Mobile Mini is expected to generate 1.8 times more return on investment than SBI Insurance. However, WillScot Mobile is 1.8 times more volatile than SBI Insurance Group. It trades about 0.24 of its potential returns per unit of risk. SBI Insurance Group is currently generating about 0.18 per unit of risk. If you would invest 3,260 in WillScot Mobile Mini on November 7, 2024 and sell it today you would earn a total of 360.00 from holding WillScot Mobile Mini or generate 11.04% 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. SBI Insurance Group
Performance |
| Timeline |
| WillScot Mobile Mini |
| SBI Insurance Group |
WillScot Mobile and SBI Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WillScot Mobile and SBI Insurance
The main advantage of trading using opposite WillScot Mobile and SBI Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WillScot Mobile position performs unexpectedly, SBI Insurance 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 SBI Insurance will offset losses from the drop in SBI Insurance's long position.| WillScot Mobile vs. Gladstone Investment | WillScot Mobile vs. Guangdong Investment Limited | WillScot Mobile vs. SLR Investment Corp | WillScot Mobile vs. PennyMac Mortgage Investment |
| SBI Insurance vs. RYU Apparel | SBI Insurance vs. Aluminum of | SBI Insurance vs. Fortescue Metals Group | SBI Insurance vs. ADRIATIC METALS LS 013355 |
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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