Correlation Between Willscot Mobile and Herc Holdings
Can any of the company-specific risk be diversified away by investing in both Willscot Mobile and Herc Holdings 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 Herc Holdings 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 Herc Holdings, you can compare the effects of market volatilities on Willscot Mobile and Herc Holdings 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 Herc Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willscot Mobile and Herc Holdings.
Diversification Opportunities for Willscot Mobile and Herc Holdings
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Willscot and Herc is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and Herc Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Herc Holdings 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 Herc Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Herc Holdings has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and Herc Holdings go up and down completely randomly.
Pair Corralation between Willscot Mobile and Herc Holdings
Considering the 90-day investment horizon Willscot Mobile Mini is expected to generate 0.8 times more return on investment than Herc Holdings. However, Willscot Mobile Mini is 1.25 times less risky than Herc Holdings. It trades about -0.08 of its potential returns per unit of risk. Herc Holdings is currently generating about -0.13 per unit of risk. If you would invest 3,361 in Willscot Mobile Mini on December 27, 2024 and sell it today you would lose (446.00) from holding Willscot Mobile Mini or give up 13.27% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Willscot Mobile Mini vs. Herc Holdings
Performance |
Timeline |
Willscot Mobile Mini |
Herc Holdings |
Willscot Mobile and Herc Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Willscot Mobile and Herc Holdings
The main advantage of trading using opposite Willscot Mobile and Herc Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willscot Mobile position performs unexpectedly, Herc Holdings 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 Herc Holdings will offset losses from the drop in Herc Holdings' long position.Willscot Mobile vs. HE Equipment Services | Willscot Mobile vs. GATX Corporation | Willscot Mobile vs. McGrath RentCorp | Willscot Mobile vs. Alta Equipment Group |
Herc Holdings vs. McGrath RentCorp | Herc Holdings vs. Alta Equipment Group | Herc Holdings vs. Custom Truck One | Herc Holdings vs. GATX Corporation |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |