Correlation Between Willscot Mobile and Amer Sports,

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

Diversification Opportunities for Willscot Mobile and Amer Sports,

-0.49

Correlation Coefficient

Willscot Mobile  Amer Sports,

Very good diversification

The 3 months correlation between Willscot and Amer is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and Amer Sports, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Sports, 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 Amer Sports,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amer Sports, has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and Amer Sports, go up and down completely randomly.

Pair Corralation between Willscot Mobile and Amer Sports,

Considering the 90-day investment horizon Willscot Mobile Mini is expected to under-perform the Amer Sports,. But the stock apears to be less risky and, when comparing its historical volatility, Willscot Mobile Mini is 1.39 times less risky than Amer Sports,. The stock trades about -0.02 of its potential returns per unit of risk. The Amer Sports, is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  1,340  in Amer Sports, on October 11, 2024 and sell it today you would earn a total of  1,713  from holding Amer Sports, or generate 127.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	47.68%
Values	Daily Returns

Willscot Mobile Mini  vs.  Amer Sports,

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.

Amer Sports,

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amer Sports, are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Amer Sports, unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Willscot Mobile and Amer Sports,

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

The idea behind Willscot Mobile Mini and Amer Sports, 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.