Correlation Between Willscot Mobile and Old Dominion
Can any of the company-specific risk be diversified away by investing in both Willscot Mobile and Old Dominion 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 Old Dominion 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 Old Dominion Freight, you can compare the effects of market volatilities on Willscot Mobile and Old Dominion 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 Old Dominion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willscot Mobile and Old Dominion.
Diversification Opportunities for Willscot Mobile and Old Dominion
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Willscot and Old is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and Old Dominion Freight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Dominion Freight 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 Old Dominion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Dominion Freight has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and Old Dominion go up and down completely randomly.
Pair Corralation between Willscot Mobile and Old Dominion
Considering the 90-day investment horizon Willscot Mobile Mini is expected to under-perform the Old Dominion. In addition to that, Willscot Mobile is 1.16 times more volatile than Old Dominion Freight. It trades about -0.02 of its total potential returns per unit of risk. Old Dominion Freight is currently generating about 0.02 per unit of volatility. If you would invest 20,308 in Old Dominion Freight on August 26, 2024 and sell it today you would earn a total of 1,717 from holding Old Dominion Freight or generate 8.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Willscot Mobile Mini vs. Old Dominion Freight
Performance |
| Timeline |
| Willscot Mobile Mini |
| Old Dominion Freight |
Willscot Mobile and Old Dominion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willscot Mobile and Old Dominion
The main advantage of trading using opposite Willscot Mobile and Old Dominion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willscot Mobile position performs unexpectedly, Old Dominion 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 Old Dominion will offset losses from the drop in Old Dominion'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 |
| Old Dominion vs. ArcBest Corp | Old Dominion vs. Marten Transport | Old Dominion vs. Werner Enterprises | Old Dominion vs. Knight Transportation |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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