Correlation Between Willscot Mobile and U Haul
Can any of the company-specific risk be diversified away by investing in both Willscot Mobile and U Haul 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 U Haul 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 U Haul Holding, you can compare the effects of market volatilities on Willscot Mobile and U Haul 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 U Haul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willscot Mobile and U Haul.
Diversification Opportunities for Willscot Mobile and U Haul
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Willscot and UHAL is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and U Haul Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Haul Holding 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 U Haul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Haul Holding has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and U Haul go up and down completely randomly.
Pair Corralation between Willscot Mobile and U Haul
Considering the 90-day investment horizon Willscot Mobile Mini is expected to under-perform the U Haul. In addition to that, Willscot Mobile is 1.17 times more volatile than U Haul Holding. It trades about -0.01 of its total potential returns per unit of risk. U Haul Holding is currently generating about 0.02 per unit of volatility. If you would invest 6,367 in U Haul Holding on August 27, 2024 and sell it today you would earn a total of 724.00 from holding U Haul Holding or generate 11.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Willscot Mobile Mini vs. U Haul Holding
Performance |
| Timeline |
| Willscot Mobile Mini |
| U Haul Holding |
Willscot Mobile and U Haul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willscot Mobile and U Haul
The main advantage of trading using opposite Willscot Mobile and U Haul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willscot Mobile position performs unexpectedly, U Haul 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 U Haul will offset losses from the drop in U Haul'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 |
| U Haul vs. Air Lease | U Haul vs. HE Equipment Services | U Haul vs. GATX Corporation | U Haul vs. Custom Truck One |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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