Correlation Between Willscot Mobile and Willis Lease
Can any of the company-specific risk be diversified away by investing in both Willscot Mobile and Willis Lease 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 Willis Lease 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 Willis Lease Finance, you can compare the effects of market volatilities on Willscot Mobile and Willis Lease 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 Willis Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willscot Mobile and Willis Lease.
Diversification Opportunities for Willscot Mobile and Willis Lease
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Willscot and Willis is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and Willis Lease Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willis Lease Finance 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 Willis Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willis Lease Finance has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and Willis Lease go up and down completely randomly.
Pair Corralation between Willscot Mobile and Willis Lease
Considering the 90-day investment horizon Willscot Mobile is expected to generate 2.9 times less return on investment than Willis Lease. But when comparing it to its historical volatility, Willscot Mobile Mini is 1.01 times less risky than Willis Lease. It trades about 0.08 of its potential returns per unit of risk. Willis Lease Finance is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 18,975 in Willis Lease Finance on September 18, 2024 and sell it today you would earn a total of 2,376 from holding Willis Lease Finance or generate 12.52% 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. Willis Lease Finance
Performance |
| Timeline |
| Willscot Mobile Mini |
| Willis Lease Finance |
Willscot Mobile and Willis Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willscot Mobile and Willis Lease
The main advantage of trading using opposite Willscot Mobile and Willis Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willscot Mobile position performs unexpectedly, Willis Lease 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 Willis Lease will offset losses from the drop in Willis Lease'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 |
| Willis Lease vs. McGrath RentCorp | Willis Lease vs. Custom Truck One | Willis Lease vs. Alta Equipment Group | Willis Lease vs. PROG 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |