Correlation Between WillScot Mobile and Granite Construction
Can any of the company-specific risk be diversified away by investing in both WillScot Mobile and Granite Construction 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 Granite Construction 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 Granite Construction, you can compare the effects of market volatilities on WillScot Mobile and Granite Construction 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 Granite Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of WillScot Mobile and Granite Construction.
Diversification Opportunities for WillScot Mobile and Granite Construction
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WillScot and Granite is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding WillScot Mobile Mini and Granite Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Construction 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 Granite Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Construction has no effect on the direction of WillScot Mobile i.e., WillScot Mobile and Granite Construction go up and down completely randomly.
Pair Corralation between WillScot Mobile and Granite Construction
Assuming the 90 days trading horizon WillScot Mobile Mini is expected to generate 2.12 times more return on investment than Granite Construction. However, WillScot Mobile is 2.12 times more volatile than Granite Construction. It trades about 0.03 of its potential returns per unit of risk. Granite Construction is currently generating about -0.22 per unit of risk. If you would invest 3,260 in WillScot Mobile Mini on October 16, 2024 and sell it today you would earn a total of 20.00 from holding WillScot Mobile Mini or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WillScot Mobile Mini vs. Granite Construction
Performance |
| Timeline |
| WillScot Mobile Mini |
| Granite Construction |
WillScot Mobile and Granite Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WillScot Mobile and Granite Construction
The main advantage of trading using opposite WillScot Mobile and Granite Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WillScot Mobile position performs unexpectedly, Granite Construction 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 Granite Construction will offset losses from the drop in Granite Construction's long position.| WillScot Mobile vs. American Public Education | WillScot Mobile vs. GOLD ROAD RES | WillScot Mobile vs. Perdoceo Education | WillScot Mobile vs. EVS Broadcast Equipment |
| Granite Construction vs. VIVA WINE GROUP | Granite Construction vs. PennantPark Investment | Granite Construction vs. TOREX SEMICONDUCTOR LTD | Granite Construction vs. Scottish Mortgage Investment |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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