Correlation Between Willscot Mobile and BBB Foods
Can any of the company-specific risk be diversified away by investing in both Willscot Mobile and BBB Foods 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 BBB Foods 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 BBB Foods, you can compare the effects of market volatilities on Willscot Mobile and BBB Foods 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 BBB Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willscot Mobile and BBB Foods.
Diversification Opportunities for Willscot Mobile and BBB Foods
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Willscot and BBB is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and BBB Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBB Foods 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 BBB Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBB Foods has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and BBB Foods go up and down completely randomly.
Pair Corralation between Willscot Mobile and BBB Foods
Considering the 90-day investment horizon Willscot Mobile Mini is expected to generate 1.04 times more return on investment than BBB Foods. However, Willscot Mobile is 1.04 times more volatile than BBB Foods. It trades about 0.22 of its potential returns per unit of risk. BBB Foods is currently generating about -0.16 per unit of risk. If you would invest 3,314 in Willscot Mobile Mini on September 1, 2024 and sell it today you would earn a total of 510.00 from holding Willscot Mobile Mini or generate 15.39% 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. BBB Foods
Performance |
| Timeline |
| Willscot Mobile Mini |
| BBB Foods |
Willscot Mobile and BBB Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willscot Mobile and BBB Foods
The main advantage of trading using opposite Willscot Mobile and BBB Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willscot Mobile position performs unexpectedly, BBB Foods 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 BBB Foods will offset losses from the drop in BBB Foods' long position.| Willscot Mobile vs. HE Equipment Services | Willscot Mobile vs. GATX Corporation | Willscot Mobile vs. McGrath RentCorp | Willscot Mobile vs. Alta Equipment Group |
| BBB Foods vs. Ingles Markets Incorporated | BBB Foods vs. Grocery Outlet Holding | BBB Foods vs. Ocado Group plc | BBB Foods vs. Sprouts Farmers Market |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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