Correlation Between WillScot Mobile and Hawesko Holding
Can any of the company-specific risk be diversified away by investing in both WillScot Mobile and Hawesko Holding 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 Hawesko Holding 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 Hawesko Holding AG, you can compare the effects of market volatilities on WillScot Mobile and Hawesko Holding 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 Hawesko Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of WillScot Mobile and Hawesko Holding.
Diversification Opportunities for WillScot Mobile and Hawesko Holding
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between WillScot and Hawesko is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding WillScot Mobile Mini and Hawesko Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawesko Holding AG 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 Hawesko Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawesko Holding AG has no effect on the direction of WillScot Mobile i.e., WillScot Mobile and Hawesko Holding go up and down completely randomly.
Pair Corralation between WillScot Mobile and Hawesko Holding
Assuming the 90 days trading horizon WillScot Mobile Mini is expected to generate 1.8 times more return on investment than Hawesko Holding. However, WillScot Mobile is 1.8 times more volatile than Hawesko Holding AG. It trades about 0.12 of its potential returns per unit of risk. Hawesko Holding AG is currently generating about 0.08 per unit of risk. If you would invest 3,320 in WillScot Mobile Mini on September 5, 2024 and sell it today you would earn a total of 280.00 from holding WillScot Mobile Mini or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
WillScot Mobile Mini vs. Hawesko Holding AG
Performance |
| Timeline |
| WillScot Mobile Mini |
| Hawesko Holding AG |
WillScot Mobile and Hawesko Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WillScot Mobile and Hawesko Holding
The main advantage of trading using opposite WillScot Mobile and Hawesko Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WillScot Mobile position performs unexpectedly, Hawesko Holding 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 Hawesko Holding will offset losses from the drop in Hawesko Holding's long position.| WillScot Mobile vs. Summit Hotel Properties | WillScot Mobile vs. Eidesvik Offshore ASA | WillScot Mobile vs. SOLSTAD OFFSHORE NK | WillScot Mobile vs. WT OFFSHORE |
| Hawesko Holding vs. X FAB Silicon Foundries | Hawesko Holding vs. National Health Investors | Hawesko Holding vs. Align Technology | Hawesko Holding vs. Ramsay Health Care |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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