Correlation Between Willscot Mobile and Pingtan Marine

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

Diversification Opportunities for Willscot Mobile and Pingtan Marine

0.48

Correlation Coefficient

Willscot Mobile  Pingtan Marine

Very weak diversification

The 3 months correlation between Willscot and Pingtan is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and Pingtan Marine Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pingtan Marine Enterprise 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 Pingtan Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pingtan Marine Enterprise has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and Pingtan Marine go up and down completely randomly.

Pair Corralation between Willscot Mobile and Pingtan Marine

Considering the 90-day investment horizon Willscot Mobile Mini is expected to generate 0.59 times more return on investment than Pingtan Marine. However, Willscot Mobile Mini is 1.71 times less risky than Pingtan Marine. It trades about -0.01 of its potential returns per unit of risk. Pingtan Marine Enterprise is currently generating about -0.15 per unit of risk. If you would invest  4,554  in Willscot Mobile Mini on September 16, 2024 and sell it today you would lose (1,042) from holding Willscot Mobile Mini or give up 22.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	10.48%
Values	Daily Returns

Willscot Mobile Mini  vs.  Pingtan Marine Enterprise

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.

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.

Pair Trading with Willscot Mobile and Pingtan Marine

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

The idea behind Willscot Mobile Mini and Pingtan Marine Enterprise 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.