Correlation Between WillScot Mobile and PT Hexindo
Can any of the company-specific risk be diversified away by investing in both WillScot Mobile and PT Hexindo 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 PT Hexindo 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 PT Hexindo Adiperkasa, you can compare the effects of market volatilities on WillScot Mobile and PT Hexindo 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 PT Hexindo. Check out your portfolio center. Please also check ongoing floating volatility patterns of WillScot Mobile and PT Hexindo.
Diversification Opportunities for WillScot Mobile and PT Hexindo
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between WillScot and HX1A is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding WillScot Mobile Mini and PT Hexindo Adiperkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Hexindo Adiperkasa 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 PT Hexindo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Hexindo Adiperkasa has no effect on the direction of WillScot Mobile i.e., WillScot Mobile and PT Hexindo go up and down completely randomly.
Pair Corralation between WillScot Mobile and PT Hexindo
Assuming the 90 days trading horizon WillScot Mobile Mini is expected to under-perform the PT Hexindo. But the stock apears to be less risky and, when comparing its historical volatility, WillScot Mobile Mini is 1.62 times less risky than PT Hexindo. The stock trades about -0.01 of its potential returns per unit of risk. The PT Hexindo Adiperkasa is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 31.00 in PT Hexindo Adiperkasa on October 12, 2024 and sell it today you would earn a total of 3.00 from holding PT Hexindo Adiperkasa or generate 9.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WillScot Mobile Mini vs. PT Hexindo Adiperkasa
Performance |
| Timeline |
| WillScot Mobile Mini |
| PT Hexindo Adiperkasa |
WillScot Mobile and PT Hexindo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WillScot Mobile and PT Hexindo
The main advantage of trading using opposite WillScot Mobile and PT Hexindo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WillScot Mobile position performs unexpectedly, PT Hexindo 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 PT Hexindo will offset losses from the drop in PT Hexindo's long position.| WillScot Mobile vs. Lendlease Group | WillScot Mobile vs. CONTAGIOUS GAMING INC | WillScot Mobile vs. Global Ship Lease | WillScot Mobile vs. WILLIS LEASE FIN |
| PT Hexindo vs. Superior Plus Corp | PT Hexindo vs. NMI Holdings | PT Hexindo vs. SIVERS SEMICONDUCTORS AB | PT Hexindo vs. Talanx AG |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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