Correlation Between Willscot Mobile and United Fire
Can any of the company-specific risk be diversified away by investing in both Willscot Mobile and United Fire 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 United Fire 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 United Fire Group, you can compare the effects of market volatilities on Willscot Mobile and United Fire 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 United Fire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willscot Mobile and United Fire.
Diversification Opportunities for Willscot Mobile and United Fire
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Willscot and United is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and United Fire Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Fire Group 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 United Fire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Fire Group has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and United Fire go up and down completely randomly.
Pair Corralation between Willscot Mobile and United Fire
Considering the 90-day investment horizon Willscot Mobile Mini is expected to under-perform the United Fire. In addition to that, Willscot Mobile is 1.27 times more volatile than United Fire Group. It trades about -0.1 of its total potential returns per unit of risk. United Fire Group is currently generating about -0.07 per unit of volatility. If you would invest 3,066 in United Fire Group on December 3, 2024 and sell it today you would lose (279.00) from holding United Fire Group or give up 9.1% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Willscot Mobile Mini vs. United Fire Group
Performance |
Timeline |
Willscot Mobile Mini |
United Fire Group |
Willscot Mobile and United Fire Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Willscot Mobile and United Fire
The main advantage of trading using opposite Willscot Mobile and United Fire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willscot Mobile position performs unexpectedly, United Fire 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 United Fire will offset losses from the drop in United Fire's long position.Willscot Mobile vs. HE Equipment Services | Willscot Mobile vs. GATX Corporation | Willscot Mobile vs. McGrath RentCorp | Willscot Mobile vs. Alta Equipment Group |
United Fire vs. Donegal Group B | United Fire vs. Horace Mann Educators | United Fire vs. Donegal Group A | United Fire vs. Global Indemnity PLC |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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