Correlation Between Willscot Mobile and ArcelorMittal
Can any of the company-specific risk be diversified away by investing in both Willscot Mobile and ArcelorMittal 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 ArcelorMittal 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 ArcelorMittal SA ADR, you can compare the effects of market volatilities on Willscot Mobile and ArcelorMittal 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 ArcelorMittal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willscot Mobile and ArcelorMittal.
Diversification Opportunities for Willscot Mobile and ArcelorMittal
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Willscot and ArcelorMittal is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and ArcelorMittal SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ArcelorMittal SA ADR 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 ArcelorMittal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ArcelorMittal SA ADR has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and ArcelorMittal go up and down completely randomly.
Pair Corralation between Willscot Mobile and ArcelorMittal
Considering the 90-day investment horizon Willscot Mobile Mini is expected to generate 1.21 times more return on investment than ArcelorMittal. However, Willscot Mobile is 1.21 times more volatile than ArcelorMittal SA ADR. It trades about -0.01 of its potential returns per unit of risk. ArcelorMittal SA ADR is currently generating about -0.01 per unit of risk. If you would invest 4,597 in Willscot Mobile Mini on September 3, 2024 and sell it today you would lose (773.00) from holding Willscot Mobile Mini or give up 16.82% 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. ArcelorMittal SA ADR
Performance |
| Timeline |
| Willscot Mobile Mini |
| ArcelorMittal SA ADR |
Willscot Mobile and ArcelorMittal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willscot Mobile and ArcelorMittal
The main advantage of trading using opposite Willscot Mobile and ArcelorMittal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willscot Mobile position performs unexpectedly, ArcelorMittal 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 ArcelorMittal will offset losses from the drop in ArcelorMittal'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 |
| ArcelorMittal vs. Olympic Steel | ArcelorMittal vs. Ternium SA ADR | ArcelorMittal vs. Gerdau SA ADR | ArcelorMittal vs. POSCO 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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