Correlation Between 05724BAD1 and Willscot Mobile

Can any of the company-specific risk be diversified away by investing in both 05724BAD1 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 05724BAD1 and Willscot Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BHI 2061 15 DEC 26 and Willscot Mobile Mini, you can compare the effects of market volatilities on 05724BAD1 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 05724BAD1 with a short position of Willscot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of 05724BAD1 and Willscot Mobile.

Diversification Opportunities for 05724BAD1 and Willscot Mobile

0.49

Correlation Coefficient

05724BAD1  Willscot Mobile

Very weak diversification

The 3 months correlation between 05724BAD1 and Willscot is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding BHI 2061 15 DEC 26 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 05724BAD1 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 BHI 2061 15 DEC 26 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 05724BAD1 i.e., 05724BAD1 and Willscot Mobile go up and down completely randomly.

Pair Corralation between 05724BAD1 and Willscot Mobile

Assuming the 90 days trading horizon BHI 2061 15 DEC 26 is expected to generate 0.16 times more return on investment than Willscot Mobile. However, BHI 2061 15 DEC 26 is 6.45 times less risky than Willscot Mobile. It trades about 0.01 of its potential returns per unit of risk. Willscot Mobile Mini is currently generating about -0.02 per unit of risk. If you would invest  9,136  in BHI 2061 15 DEC 26 on October 3, 2024 and sell it today you would earn a total of  125.00  from holding BHI 2061 15 DEC 26 or generate 1.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.76%
Values	Daily Returns

BHI 2061 15 DEC 26  vs.  Willscot Mobile Mini

BHI 2061 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BHI 2061 15 DEC 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 05724BAD1 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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 latest uncertain performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with 05724BAD1 and Willscot Mobile

The main advantage of trading using opposite 05724BAD1 and Willscot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 05724BAD1 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 BHI 2061 15 DEC 26 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 Positions Ratings module to 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.