Correlation Between WillScot Mobile and Zurich Insurance
Can any of the company-specific risk be diversified away by investing in both WillScot Mobile and Zurich Insurance 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 Zurich Insurance 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 Zurich Insurance Group, you can compare the effects of market volatilities on WillScot Mobile and Zurich Insurance 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 Zurich Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of WillScot Mobile and Zurich Insurance.
Diversification Opportunities for WillScot Mobile and Zurich Insurance
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between WillScot and Zurich is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding WillScot Mobile Mini and Zurich Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zurich Insurance 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 Zurich Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zurich Insurance has no effect on the direction of WillScot Mobile i.e., WillScot Mobile and Zurich Insurance go up and down completely randomly.
Pair Corralation between WillScot Mobile and Zurich Insurance
Assuming the 90 days trading horizon WillScot Mobile is expected to generate 2.81 times less return on investment than Zurich Insurance. In addition to that, WillScot Mobile is 2.52 times more volatile than Zurich Insurance Group. It trades about 0.02 of its total potential returns per unit of risk. Zurich Insurance Group is currently generating about 0.17 per unit of volatility. If you would invest 2,720 in Zurich Insurance Group on August 31, 2024 and sell it today you would earn a total of 200.00 from holding Zurich Insurance Group or generate 7.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
WillScot Mobile Mini vs. Zurich Insurance Group
Performance |
| Timeline |
| WillScot Mobile Mini |
| Zurich Insurance |
WillScot Mobile and Zurich Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WillScot Mobile and Zurich Insurance
The main advantage of trading using opposite WillScot Mobile and Zurich Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WillScot Mobile position performs unexpectedly, Zurich Insurance 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 Zurich Insurance will offset losses from the drop in Zurich Insurance's long position.| WillScot Mobile vs. COPLAND ROAD CAPITAL | WillScot Mobile vs. SLR Investment Corp | WillScot Mobile vs. Air Transport Services | WillScot Mobile vs. REGAL ASIAN INVESTMENTS |
| Zurich Insurance vs. Ribbon Communications | Zurich Insurance vs. Rogers Communications | Zurich Insurance vs. Cogent Communications Holdings | Zurich Insurance vs. Autohome ADR |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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