Correlation Between Willscot Mobile and CureVac NV
Can any of the company-specific risk be diversified away by investing in both Willscot Mobile and CureVac NV 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 CureVac NV 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 CureVac NV, you can compare the effects of market volatilities on Willscot Mobile and CureVac NV 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 CureVac NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willscot Mobile and CureVac NV.
Diversification Opportunities for Willscot Mobile and CureVac NV
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Willscot and CureVac is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and CureVac NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CureVac NV 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 CureVac NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CureVac NV has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and CureVac NV go up and down completely randomly.
Pair Corralation between Willscot Mobile and CureVac NV
Considering the 90-day investment horizon Willscot Mobile Mini is expected to generate 0.56 times more return on investment than CureVac NV. However, Willscot Mobile Mini is 1.79 times less risky than CureVac NV. It trades about -0.01 of its potential returns per unit of risk. CureVac NV is currently generating about -0.04 per unit of risk. If you would invest 4,634 in Willscot Mobile Mini on August 24, 2024 and sell it today you would lose (1,004) from holding Willscot Mobile Mini or give up 21.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Willscot Mobile Mini vs. CureVac NV
Performance |
| Timeline |
| Willscot Mobile Mini |
| CureVac NV |
Willscot Mobile and CureVac NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willscot Mobile and CureVac NV
The main advantage of trading using opposite Willscot Mobile and CureVac NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willscot Mobile position performs unexpectedly, CureVac NV 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 CureVac NV will offset losses from the drop in CureVac NV'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 |
| CureVac NV vs. Willscot Mobile Mini | CureVac NV vs. Fortress Transp Infra | CureVac NV vs. Mesa Air Group | CureVac NV vs. Mayfair Gold Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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