Correlation Between WillScot Mobile and BURLINGTON STORES
Can any of the company-specific risk be diversified away by investing in both WillScot Mobile and BURLINGTON STORES 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 BURLINGTON STORES 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 BURLINGTON STORES, you can compare the effects of market volatilities on WillScot Mobile and BURLINGTON STORES 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 BURLINGTON STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of WillScot Mobile and BURLINGTON STORES.
Diversification Opportunities for WillScot Mobile and BURLINGTON STORES
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between WillScot and BURLINGTON is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding WillScot Mobile Mini and BURLINGTON STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BURLINGTON STORES 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 BURLINGTON STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BURLINGTON STORES has no effect on the direction of WillScot Mobile i.e., WillScot Mobile and BURLINGTON STORES go up and down completely randomly.
Pair Corralation between WillScot Mobile and BURLINGTON STORES
Assuming the 90 days trading horizon WillScot Mobile Mini is expected to under-perform the BURLINGTON STORES. In addition to that, WillScot Mobile is 1.55 times more volatile than BURLINGTON STORES. It trades about -0.14 of its total potential returns per unit of risk. BURLINGTON STORES is currently generating about -0.01 per unit of volatility. If you would invest 27,200 in BURLINGTON STORES on September 24, 2024 and sell it today you would lose (200.00) from holding BURLINGTON STORES or give up 0.74% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
WillScot Mobile Mini vs. BURLINGTON STORES
Performance |
Timeline |
WillScot Mobile Mini |
BURLINGTON STORES |
WillScot Mobile and BURLINGTON STORES Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WillScot Mobile and BURLINGTON STORES
The main advantage of trading using opposite WillScot Mobile and BURLINGTON STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WillScot Mobile position performs unexpectedly, BURLINGTON STORES 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 BURLINGTON STORES will offset losses from the drop in BURLINGTON STORES's long position.WillScot Mobile vs. Ashtead Group plc | WillScot Mobile vs. Avis Budget Group | WillScot Mobile vs. Sixt SE | WillScot Mobile vs. ELEMENT FLEET MGMT |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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