Correlation Between WillScot Mobile and Sixt SE
Can any of the company-specific risk be diversified away by investing in both WillScot Mobile and Sixt SE 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 Sixt SE 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 Sixt SE, you can compare the effects of market volatilities on WillScot Mobile and Sixt SE 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 Sixt SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of WillScot Mobile and Sixt SE.
Diversification Opportunities for WillScot Mobile and Sixt SE
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between WillScot and Sixt is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding WillScot Mobile Mini and Sixt SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt SE 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 Sixt SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt SE has no effect on the direction of WillScot Mobile i.e., WillScot Mobile and Sixt SE go up and down completely randomly.
Pair Corralation between WillScot Mobile and Sixt SE
Assuming the 90 days trading horizon WillScot Mobile is expected to generate 116.0 times less return on investment than Sixt SE. In addition to that, WillScot Mobile is 1.19 times more volatile than Sixt SE. It trades about 0.0 of its total potential returns per unit of risk. Sixt SE is currently generating about 0.02 per unit of volatility. If you would invest 5,068 in Sixt SE on September 12, 2024 and sell it today you would earn a total of 432.00 from holding Sixt SE or generate 8.52% 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. Sixt SE
Performance |
| Timeline |
| WillScot Mobile Mini |
| Sixt SE |
WillScot Mobile and Sixt SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WillScot Mobile and Sixt SE
The main advantage of trading using opposite WillScot Mobile and Sixt SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WillScot Mobile position performs unexpectedly, Sixt SE 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 Sixt SE will offset losses from the drop in Sixt SE's long position.| WillScot Mobile vs. United Rentals | WillScot Mobile vs. Superior Plus Corp | WillScot Mobile vs. SIVERS SEMICONDUCTORS AB | WillScot Mobile vs. Norsk Hydro ASA |
| Sixt SE vs. United Rentals | Sixt SE vs. WillScot Mobile Mini | Sixt SE vs. Superior Plus Corp | Sixt SE vs. SIVERS SEMICONDUCTORS AB |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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