Correlation Between Pingtan Marine and Willscot Mobile

Can any of the company-specific risk be diversified away by investing in both Pingtan Marine 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 Pingtan Marine and Willscot Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pingtan Marine Enterprise and Willscot Mobile Mini, you can compare the effects of market volatilities on Pingtan Marine 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 Pingtan Marine with a short position of Willscot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pingtan Marine and Willscot Mobile.

Diversification Opportunities for Pingtan Marine and Willscot Mobile

0.48

Correlation Coefficient

Pingtan Marine  Willscot Mobile

Very weak diversification

The 3 months correlation between Pingtan and Willscot is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Pingtan Marine Enterprise 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 Pingtan Marine 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 Pingtan Marine Enterprise 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 Pingtan Marine i.e., Pingtan Marine and Willscot Mobile go up and down completely randomly.

Pair Corralation between Pingtan Marine and Willscot Mobile

If you would invest  27.00  in Pingtan Marine Enterprise on September 16, 2024 and sell it today you would earn a total of  0.00  from holding Pingtan Marine Enterprise or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.54%
Values	Daily Returns

Pingtan Marine Enterprise  vs.  Willscot Mobile Mini

Pingtan Marine Enterprise

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pingtan Marine Enterprise has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Pingtan Marine is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

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 latest uncertain 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.

Pair Trading with Pingtan Marine and Willscot Mobile

The main advantage of trading using opposite Pingtan Marine and Willscot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pingtan Marine 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.

The idea behind Pingtan Marine Enterprise and Willscot Mobile Mini 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.