Correlation Between Willscot Mobile and Triton International

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

Diversification Opportunities for Willscot Mobile and Triton International

0.3

Correlation Coefficient

Willscot Mobile  Triton International

Weak diversification

The 3 months correlation between Willscot and Triton is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Willscot Mobile Mini and Triton International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triton International 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 Triton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triton International has no effect on the direction of Willscot Mobile i.e., Willscot Mobile and Triton International go up and down completely randomly.

Pair Corralation between Willscot Mobile and Triton International

Considering the 90-day investment horizon Willscot Mobile Mini is expected to under-perform the Triton International. In addition to that, Willscot Mobile is 6.17 times more volatile than Triton International Limited. It trades about -0.04 of its total potential returns per unit of risk. Triton International Limited is currently generating about -0.03 per unit of volatility. If you would invest  2,479  in Triton International Limited on September 16, 2024 and sell it today you would lose (27.00) from holding Triton International Limited or give up 1.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Willscot Mobile Mini  vs.  Triton International Limited

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.

Triton International

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Willscot Mobile and Triton International

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

The idea behind Willscot Mobile Mini and Triton International Limited 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.