Correlation Between Willscot Mobile and Hertz Global
Can any of the company-specific risk be diversified away by investing in both Willscot Mobile and Hertz Global 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 Hertz Global 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 Hertz Global Holdings, you can compare the effects of market volatilities on Willscot Mobile and Hertz Global 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 Hertz Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willscot Mobile and Hertz Global.
Diversification Opportunities for Willscot Mobile and Hertz Global
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Willscot and Hertz is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and Hertz Global Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hertz Global Holdings 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 Hertz Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hertz Global Holdings has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and Hertz Global go up and down completely randomly.
Pair Corralation between Willscot Mobile and Hertz Global
Considering the 90-day investment horizon Willscot Mobile Mini is expected to generate 0.52 times more return on investment than Hertz Global. However, Willscot Mobile Mini is 1.93 times less risky than Hertz Global. It trades about -0.02 of its potential returns per unit of risk. Hertz Global Holdings is currently generating about -0.07 per unit of risk. If you would invest 4,807 in Willscot Mobile Mini on August 26, 2024 and sell it today you would lose (1,177) from holding Willscot Mobile Mini or give up 24.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Willscot Mobile Mini vs. Hertz Global Holdings
Performance |
| Timeline |
| Willscot Mobile Mini |
| Hertz Global Holdings |
Willscot Mobile and Hertz Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willscot Mobile and Hertz Global
The main advantage of trading using opposite Willscot Mobile and Hertz Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willscot Mobile position performs unexpectedly, Hertz Global 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 Hertz Global will offset losses from the drop in Hertz Global'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 |
| Hertz Global vs. United Rentals | Hertz Global vs. Ryder System | Hertz Global vs. Herc Holdings | Hertz Global vs. Hertz Global Hldgs |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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