Correlation Between Willscot Mobile and Solstad Offshore
Can any of the company-specific risk be diversified away by investing in both Willscot Mobile and Solstad Offshore 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 Solstad Offshore 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 Solstad Offshore ASA, you can compare the effects of market volatilities on Willscot Mobile and Solstad Offshore 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 Solstad Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willscot Mobile and Solstad Offshore.
Diversification Opportunities for Willscot Mobile and Solstad Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Willscot and Solstad is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and Solstad Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solstad Offshore ASA 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 Solstad Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solstad Offshore ASA has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and Solstad Offshore go up and down completely randomly.
Pair Corralation between Willscot Mobile and Solstad Offshore
Considering the 90-day investment horizon Willscot Mobile Mini is expected to under-perform the Solstad Offshore. But the stock apears to be less risky and, when comparing its historical volatility, Willscot Mobile Mini is 2.12 times less risky than Solstad Offshore. The stock trades about -0.01 of its potential returns per unit of risk. The Solstad Offshore ASA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 151.00 in Solstad Offshore ASA on September 1, 2024 and sell it today you would earn a total of 158.00 from holding Solstad Offshore ASA or generate 104.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Willscot Mobile Mini vs. Solstad Offshore ASA
Performance |
| Timeline |
| Willscot Mobile Mini |
| Solstad Offshore ASA |
Willscot Mobile and Solstad Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willscot Mobile and Solstad Offshore
The main advantage of trading using opposite Willscot Mobile and Solstad Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willscot Mobile position performs unexpectedly, Solstad Offshore 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 Solstad Offshore will offset losses from the drop in Solstad Offshore'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 |
| Solstad Offshore vs. Hapag Lloyd Aktiengesellschaft | Solstad Offshore vs. AP Moeller Maersk AS | Solstad Offshore vs. AP Mller | Solstad Offshore vs. COSCO SHIPPING 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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