Correlation Between Boston Beer and WillScot Mobile

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

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

Diversification Opportunities for Boston Beer and WillScot Mobile

-0.16

Correlation Coefficient

Boston Beer  WillScot Mobile

Good diversification

The 3 months correlation between Boston and WillScot is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding The Boston Beer 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 Boston Beer 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 The Boston Beer 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 Boston Beer i.e., Boston Beer and WillScot Mobile go up and down completely randomly.

Pair Corralation between Boston Beer and WillScot Mobile

Assuming the 90 days trading horizon The Boston Beer is expected to under-perform the WillScot Mobile. But the stock apears to be less risky and, when comparing its historical volatility, The Boston Beer is 1.46 times less risky than WillScot Mobile. The stock trades about -0.21 of its potential returns per unit of risk. The WillScot Mobile Mini is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  1,965  in WillScot Mobile Mini on April 23, 2025 and sell it today you would earn a total of  615.00  from holding WillScot Mobile Mini or generate 31.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

The Boston Beer  vs.  WillScot Mobile Mini

Boston Beer

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Boston Beer has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

WillScot Mobile Mini

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in WillScot Mobile Mini are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, WillScot Mobile reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Boston Beer and WillScot Mobile

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

Check out your portfolio center.

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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.