Correlation Between WillScot Mobile and FUYO GENERAL
Can any of the company-specific risk be diversified away by investing in both WillScot Mobile and FUYO GENERAL 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 FUYO GENERAL 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 FUYO GENERAL LEASE, you can compare the effects of market volatilities on WillScot Mobile and FUYO GENERAL 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 FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of WillScot Mobile and FUYO GENERAL.
Diversification Opportunities for WillScot Mobile and FUYO GENERAL
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between WillScot and FUYO is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding WillScot Mobile Mini and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE 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 FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of WillScot Mobile i.e., WillScot Mobile and FUYO GENERAL go up and down completely randomly.
Pair Corralation between WillScot Mobile and FUYO GENERAL
Assuming the 90 days trading horizon WillScot Mobile Mini is expected to generate 1.85 times more return on investment than FUYO GENERAL. However, WillScot Mobile is 1.85 times more volatile than FUYO GENERAL LEASE. It trades about 0.23 of its potential returns per unit of risk. FUYO GENERAL LEASE is currently generating about 0.01 per unit of risk. If you would invest 3,200 in WillScot Mobile Mini on November 3, 2024 and sell it today you would earn a total of 340.00 from holding WillScot Mobile Mini or generate 10.63% 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. FUYO GENERAL LEASE
Performance |
| Timeline |
| WillScot Mobile Mini |
| FUYO GENERAL LEASE |
WillScot Mobile and FUYO GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WillScot Mobile and FUYO GENERAL
The main advantage of trading using opposite WillScot Mobile and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WillScot Mobile position performs unexpectedly, FUYO GENERAL 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 FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.| WillScot Mobile vs. United Rentals | WillScot Mobile vs. Ashtead Group plc | WillScot Mobile vs. AMERCO | WillScot Mobile vs. Avis Budget Group |
| FUYO GENERAL vs. ePlay Digital | FUYO GENERAL vs. Geely Automobile Holdings | FUYO GENERAL vs. ANTA SPORTS PRODUCT | FUYO GENERAL vs. Cairo Communication SpA |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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