Correlation Between Willscot Mobile and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both Willscot Mobile and Meiwu Technology 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 Meiwu Technology 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 Meiwu Technology Co, you can compare the effects of market volatilities on Willscot Mobile and Meiwu Technology 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 Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willscot Mobile and Meiwu Technology.
Diversification Opportunities for Willscot Mobile and Meiwu Technology
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Willscot and Meiwu is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology 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 Meiwu Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meiwu Technology has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and Meiwu Technology go up and down completely randomly.
Pair Corralation between Willscot Mobile and Meiwu Technology
Considering the 90-day investment horizon Willscot Mobile is expected to generate 17.63 times less return on investment than Meiwu Technology. But when comparing it to its historical volatility, Willscot Mobile Mini is 4.05 times less risky than Meiwu Technology. It trades about 0.0 of its potential returns per unit of risk. Meiwu Technology Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 271.00 in Meiwu Technology Co on September 2, 2024 and sell it today you would lose (173.00) from holding Meiwu Technology Co or give up 63.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Willscot Mobile Mini vs. Meiwu Technology Co
Performance |
| Timeline |
| Willscot Mobile Mini |
| Meiwu Technology |
Willscot Mobile and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willscot Mobile and Meiwu Technology
The main advantage of trading using opposite Willscot Mobile and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willscot Mobile position performs unexpectedly, Meiwu Technology 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 Meiwu Technology will offset losses from the drop in Meiwu Technology'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 |
| Meiwu Technology vs. BJs Wholesale Club | Meiwu Technology vs. Dollar General | Meiwu Technology vs. Grocery Outlet Holding | Meiwu Technology vs. Kroger Company |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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