Correlation Between Willscot Mobile and Air Transport
Can any of the company-specific risk be diversified away by investing in both Willscot Mobile and Air Transport 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 Air Transport 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 Air Transport Services, you can compare the effects of market volatilities on Willscot Mobile and Air Transport 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 Air Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willscot Mobile and Air Transport.
Diversification Opportunities for Willscot Mobile and Air Transport
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Willscot and Air is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and Air Transport Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Transport Services 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 Air Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Transport Services has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and Air Transport go up and down completely randomly.
Pair Corralation between Willscot Mobile and Air Transport
Considering the 90-day investment horizon Willscot Mobile Mini is expected to under-perform the Air Transport. But the stock apears to be less risky and, when comparing its historical volatility, Willscot Mobile Mini is 1.47 times less risky than Air Transport. The stock trades about 0.0 of its potential returns per unit of risk. The Air Transport Services is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,636 in Air Transport Services on August 31, 2024 and sell it today you would lose (437.00) from holding Air Transport Services or give up 16.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Willscot Mobile Mini vs. Air Transport Services
Performance |
| Timeline |
| Willscot Mobile Mini |
| Air Transport Services |
Willscot Mobile and Air Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willscot Mobile and Air Transport
The main advantage of trading using opposite Willscot Mobile and Air Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willscot Mobile position performs unexpectedly, Air Transport 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 Air Transport will offset losses from the drop in Air Transport's long position.| Willscot Mobile vs. HE Equipment Services | Willscot Mobile vs. GATX Corporation | Willscot Mobile vs. McGrath RentCorp | Willscot Mobile vs. Alta Equipment Group |
| Air Transport vs. Copa Holdings SA | Air Transport vs. SkyWest | Air Transport vs. Sun Country Airlines | Air Transport vs. Frontier Group Holdings |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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