Correlation Between Willscot Mobile and Fortress Transportation

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

Diversification Opportunities for Willscot Mobile and Fortress Transportation

-0.27

Correlation Coefficient

Willscot Mobile  Fortress Transportation

Very good diversification

The 3 months correlation between Willscot and Fortress is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and Fortress Transportation and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortress Transportation 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 Fortress Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortress Transportation has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and Fortress Transportation go up and down completely randomly.

Pair Corralation between Willscot Mobile and Fortress Transportation

Considering the 90-day investment horizon Willscot Mobile Mini is expected to generate 6.92 times more return on investment than Fortress Transportation. However, Willscot Mobile is 6.92 times more volatile than Fortress Transportation and. It trades about 0.05 of its potential returns per unit of risk. Fortress Transportation and is currently generating about 0.31 per unit of risk. If you would invest  3,830  in Willscot Mobile Mini on March 7, 2024 and sell it today you would earn a total of  67.00  from holding Willscot Mobile Mini or generate 1.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Willscot Mobile Mini  vs.  Fortress Transportation and

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 unfluctuating performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in July 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Fortress Transportation

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fortress Transportation and are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable forward indicators, Fortress Transportation is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Willscot Mobile and Fortress Transportation

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

The idea behind Willscot Mobile Mini and Fortress Transportation and 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.