Correlation Between Willscot Mobile and HE Equipment
Can any of the company-specific risk be diversified away by investing in both Willscot Mobile and HE Equipment 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 HE Equipment 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 HE Equipment Services, you can compare the effects of market volatilities on Willscot Mobile and HE Equipment 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 HE Equipment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willscot Mobile and HE Equipment.
Diversification Opportunities for Willscot Mobile and HE Equipment
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Willscot and HEES is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and HE Equipment Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HE Equipment Services 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 HE Equipment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HE Equipment Services has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and HE Equipment go up and down completely randomly.
Pair Corralation between Willscot Mobile and HE Equipment
Considering the 90-day investment horizon Willscot Mobile Mini is expected to under-perform the HE Equipment. But the stock apears to be less risky and, when comparing its historical volatility, Willscot Mobile Mini is 2.06 times less risky than HE Equipment. The stock trades about -0.03 of its potential returns per unit of risk. The HE Equipment Services is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,683 in HE Equipment Services on March 20, 2025 and sell it today you would earn a total of 4,781 from holding HE Equipment Services or generate 102.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Willscot Mobile Mini vs. HE Equipment Services
Performance |
| Timeline |
| Willscot Mobile Mini |
| HE Equipment Services |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Willscot Mobile and HE Equipment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willscot Mobile and HE Equipment
The main advantage of trading using opposite Willscot Mobile and HE Equipment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willscot Mobile position performs unexpectedly, HE Equipment 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 HE Equipment will offset losses from the drop in HE Equipment's long position.| Willscot Mobile vs. GATX Corporation | Willscot Mobile vs. McGrath RentCorp | Willscot Mobile vs. Alta Equipment Group | Willscot Mobile vs. Ryder System |
| HE Equipment vs. GATX Corporation | HE Equipment vs. McGrath RentCorp | HE Equipment vs. Alta Equipment Group | HE Equipment vs. Ryder System |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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