Correlation Between Willscot Mobile and Stratasys

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

Diversification Opportunities for Willscot Mobile and Stratasys

-0.28

Correlation Coefficient

Willscot Mobile  Stratasys

Very good diversification

The 3 months correlation between Willscot and Stratasys is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and Stratasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stratasys 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 Stratasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stratasys has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and Stratasys go up and down completely randomly.

Pair Corralation between Willscot Mobile and Stratasys

Considering the 90-day investment horizon Willscot Mobile Mini is expected to generate 0.5 times more return on investment than Stratasys. However, Willscot Mobile Mini is 1.99 times less risky than Stratasys. It trades about 0.36 of its potential returns per unit of risk. Stratasys is currently generating about -0.06 per unit of risk. If you would invest  3,384  in Willscot Mobile Mini on October 23, 2024 and sell it today you would earn a total of  280.00  from holding Willscot Mobile Mini or generate 8.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Willscot Mobile Mini  vs.  Stratasys

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.

Stratasys

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Stratasys are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Stratasys unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Willscot Mobile and Stratasys

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

The idea behind Willscot Mobile Mini and Stratasys 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.