Correlation Between Willscot Mobile and Lithium Americas
Can any of the company-specific risk be diversified away by investing in both Willscot Mobile and Lithium Americas 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 Lithium Americas 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 Lithium Americas Corp, you can compare the effects of market volatilities on Willscot Mobile and Lithium Americas 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 Lithium Americas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willscot Mobile and Lithium Americas.
Diversification Opportunities for Willscot Mobile and Lithium Americas
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Willscot and Lithium is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and Lithium Americas Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lithium Americas Corp 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 Lithium Americas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lithium Americas Corp has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and Lithium Americas go up and down completely randomly.
Pair Corralation between Willscot Mobile and Lithium Americas
Considering the 90-day investment horizon Willscot Mobile Mini is expected to generate 0.57 times more return on investment than Lithium Americas. However, Willscot Mobile Mini is 1.75 times less risky than Lithium Americas. It trades about 0.0 of its potential returns per unit of risk. Lithium Americas Corp is currently generating about -0.03 per unit of risk. If you would invest 4,038 in Willscot Mobile Mini on September 4, 2024 and sell it today you would lose (217.00) from holding Willscot Mobile Mini or give up 5.37% 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. Lithium Americas Corp
Performance |
| Timeline |
| Willscot Mobile Mini |
| Lithium Americas Corp |
Willscot Mobile and Lithium Americas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willscot Mobile and Lithium Americas
The main advantage of trading using opposite Willscot Mobile and Lithium Americas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willscot Mobile position performs unexpectedly, Lithium Americas 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 Lithium Americas will offset losses from the drop in Lithium Americas' long position.| Willscot Mobile vs. HE Equipment Services | Willscot Mobile vs. GATX Corporation | Willscot Mobile vs. McGrath RentCorp | Willscot Mobile vs. Alta Equipment Group |
| Lithium Americas vs. Arrow Electronics | Lithium Americas vs. Minerals Technologies | Lithium Americas vs. Pintec Technology Holdings | Lithium Americas vs. Juniata Valley Financial |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |