Correlation Between WillScot Mobile and Rogers Communications

Can any of the company-specific risk be diversified away by investing in both WillScot Mobile and Rogers Communications 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 Rogers Communications 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 Rogers Communications, you can compare the effects of market volatilities on WillScot Mobile and Rogers Communications 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 Rogers Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of WillScot Mobile and Rogers Communications.

Diversification Opportunities for WillScot Mobile and Rogers Communications

0.17

Correlation Coefficient

WillScot Mobile  Rogers Communications

Average diversification

The 3 months correlation between WillScot and Rogers is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding WillScot Mobile Mini and Rogers Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers Communications 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 Rogers Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rogers Communications has no effect on the direction of WillScot Mobile i.e., WillScot Mobile and Rogers Communications go up and down completely randomly.

Pair Corralation between WillScot Mobile and Rogers Communications

Assuming the 90 days trading horizon WillScot Mobile Mini is expected to under-perform the Rogers Communications. In addition to that, WillScot Mobile is 1.51 times more volatile than Rogers Communications. It trades about -0.15 of its total potential returns per unit of risk. Rogers Communications is currently generating about -0.14 per unit of volatility. If you would invest  2,920  in Rogers Communications on December 11, 2024 and sell it today you would lose (300.00) from holding Rogers Communications or give up 10.27% 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.  Rogers Communications

WillScot Mobile Mini

Risk-Adjusted Performance

Very Weak

Over the last 90 days WillScot Mobile Mini has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Rogers Communications

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rogers Communications has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's forward indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with WillScot Mobile and Rogers Communications

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

The idea behind WillScot Mobile Mini and Rogers Communications 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.