Correlation Between BCE and Willscot Mobile

Can any of the company-specific risk be diversified away by investing in both BCE and Willscot Mobile 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 BCE and Willscot Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BCE Inc and Willscot Mobile Mini, you can compare the effects of market volatilities on BCE and Willscot Mobile 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 BCE with a short position of Willscot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCE and Willscot Mobile.

Diversification Opportunities for BCE and Willscot Mobile

0.55

Correlation Coefficient

BCE  Willscot Mobile

Very weak diversification

The 3 months correlation between BCE and Willscot is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding BCE Inc and Willscot Mobile Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willscot Mobile Mini and BCE 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 BCE Inc are associated (or correlated) with Willscot Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willscot Mobile Mini has no effect on the direction of BCE i.e., BCE and Willscot Mobile go up and down completely randomly.

Pair Corralation between BCE and Willscot Mobile

Considering the 90-day investment horizon BCE is expected to generate 5.27 times less return on investment than Willscot Mobile. In addition to that, BCE is 1.19 times more volatile than Willscot Mobile Mini. It trades about 0.06 of its total potential returns per unit of risk. Willscot Mobile Mini is currently generating about 0.36 per unit of volatility. If you would invest  3,384  in Willscot Mobile Mini on October 23, 2024 and sell it today you would earn a total of  280.00  from holding Willscot Mobile Mini or generate 8.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

BCE Inc  vs.  Willscot Mobile Mini

BCE Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BCE Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Willscot Mobile Mini

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Willscot Mobile Mini has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Willscot Mobile is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with BCE and Willscot Mobile

The main advantage of trading using opposite BCE and Willscot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCE position performs unexpectedly, Willscot Mobile 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 Willscot Mobile will offset losses from the drop in Willscot Mobile's long position.

The idea behind BCE Inc and Willscot Mobile Mini pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.