Correlation Between NH HOTEL and WillScot Mobile

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

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

Diversification Opportunities for NH HOTEL and WillScot Mobile

0.22

Correlation Coefficient

NH HOTEL  WillScot Mobile

Modest diversification

The 3 months correlation between NH5 and WillScot is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding NH HOTEL GROUP 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 NH HOTEL 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 NH HOTEL GROUP 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 NH HOTEL i.e., NH HOTEL and WillScot Mobile go up and down completely randomly.

Pair Corralation between NH HOTEL and WillScot Mobile

Assuming the 90 days trading horizon NH HOTEL is expected to generate 21.34 times less return on investment than WillScot Mobile. But when comparing it to its historical volatility, NH HOTEL GROUP is 1.92 times less risky than WillScot Mobile. It trades about 0.02 of its potential returns per unit of risk. WillScot Mobile Mini is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  1,885  in WillScot Mobile Mini on April 20, 2025 and sell it today you would earn a total of  635.00  from holding WillScot Mobile Mini or generate 33.69% return on investment over 90 days.

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

NH HOTEL GROUP  vs.  WillScot Mobile Mini

NH HOTEL GROUP

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in NH HOTEL GROUP are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, NH HOTEL is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

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 fragile basic indicators, WillScot Mobile reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NH HOTEL and WillScot Mobile

The main advantage of trading using opposite NH HOTEL and WillScot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH HOTEL 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 NH HOTEL GROUP 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.