Correlation Between Willscot Mobile and Icon Energy

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

Diversification Opportunities for Willscot Mobile and Icon Energy

0.23

Correlation Coefficient

Willscot Mobile  Icon Energy

Modest diversification

The 3 months correlation between Willscot and Icon is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and Icon Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Energy Corp 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 Icon Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Energy Corp has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and Icon Energy go up and down completely randomly.

Pair Corralation between Willscot Mobile and Icon Energy

Considering the 90-day investment horizon Willscot Mobile Mini is expected to generate 0.19 times more return on investment than Icon Energy. However, Willscot Mobile Mini is 5.22 times less risky than Icon Energy. It trades about -0.07 of its potential returns per unit of risk. Icon Energy Corp is currently generating about -0.27 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 (430.00) from holding Willscot Mobile Mini or give up 12.79% 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.  Icon Energy Corp

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. 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.

Icon Energy Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Icon Energy Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Willscot Mobile and Icon Energy

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

The idea behind Willscot Mobile Mini and Icon Energy Corp 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.