Correlation Between Philip Morris and Willscot Mobile
Can any of the company-specific risk be diversified away by investing in both Philip Morris and Willscot Mobile 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 Philip Morris and Willscot Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Philip Morris International and Willscot Mobile Mini, you can compare the effects of market volatilities on Philip Morris and Willscot Mobile 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 Philip Morris with a short position of Willscot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philip Morris and Willscot Mobile.
Diversification Opportunities for Philip Morris and Willscot Mobile
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Philip and Willscot is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Philip Morris International and Willscot Mobile Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willscot Mobile Mini and Philip Morris 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 Philip Morris International are associated (or correlated) with Willscot Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willscot Mobile Mini has no effect on the direction of Philip Morris i.e., Philip Morris and Willscot Mobile go up and down completely randomly.
Pair Corralation between Philip Morris and Willscot Mobile
Allowing for the 90-day total investment horizon Philip Morris International is expected to generate 0.6 times more return on investment than Willscot Mobile. However, Philip Morris International is 1.67 times less risky than Willscot Mobile. It trades about -0.08 of its potential returns per unit of risk. Willscot Mobile Mini is currently generating about -0.09 per unit of risk. If you would invest 17,769 in Philip Morris International on June 10, 2025 and sell it today you would lose (1,614) from holding Philip Morris International or give up 9.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Philip Morris International vs. Willscot Mobile Mini
Performance |
| Timeline |
| Philip Morris Intern |
| Willscot Mobile Mini |
Philip Morris and Willscot Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philip Morris and Willscot Mobile
The main advantage of trading using opposite Philip Morris and Willscot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philip Morris position performs unexpectedly, Willscot Mobile 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 Willscot Mobile will offset losses from the drop in Willscot Mobile's long position.| Philip Morris vs. Altria Group | Philip Morris vs. British American Tobacco | Philip Morris vs. Universal | Philip Morris vs. Imperial Brands PLC |
| Willscot Mobile vs. Herc Holdings | Willscot Mobile vs. McGrath RentCorp | Willscot Mobile vs. GATX Corporation | Willscot Mobile vs. U Haul Holding |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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