Correlation Between Willscot Mobile and United Utilities

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

Diversification Opportunities for Willscot Mobile and United Utilities

0.55
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Willscot and United is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and United Utilities Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Utilities 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 Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Utilities has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and United Utilities go up and down completely randomly.

Pair Corralation between Willscot Mobile and United Utilities

Considering the 90-day investment horizon Willscot Mobile Mini is expected to under-perform the United Utilities. In addition to that, Willscot Mobile is 3.7 times more volatile than United Utilities Group. It trades about -0.04 of its total potential returns per unit of risk. United Utilities Group is currently generating about 0.08 per unit of volatility. If you would invest  1,547  in United Utilities Group on September 8, 2025 and sell it today you would earn a total of  68.00  from holding United Utilities Group or generate 4.4% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Willscot Mobile Mini  vs.  United Utilities Group

 Performance 
       Timeline  
Willscot Mobile Mini 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
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 fragile 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.
United Utilities 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in United Utilities Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, United Utilities is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Willscot Mobile and United Utilities Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Willscot Mobile and United Utilities

The main advantage of trading using opposite Willscot Mobile and United Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willscot Mobile position performs unexpectedly, United Utilities 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 Utilities will offset losses from the drop in United Utilities' long position.
The idea behind Willscot Mobile Mini and United Utilities Group 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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