Correlation Between WillScot Mobile and Waste Connections

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

Diversification Opportunities for WillScot Mobile and Waste Connections

-0.24

Correlation Coefficient

WillScot Mobile  Waste Connections

Very good diversification

The 3 months correlation between WillScot and Waste is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding WillScot Mobile Mini and Waste Connections in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waste Connections 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 Waste Connections. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waste Connections has no effect on the direction of WillScot Mobile i.e., WillScot Mobile and Waste Connections go up and down completely randomly.

Pair Corralation between WillScot Mobile and Waste Connections

Assuming the 90 days trading horizon WillScot Mobile Mini is expected to generate 2.07 times more return on investment than Waste Connections. However, WillScot Mobile is 2.07 times more volatile than Waste Connections. It trades about 0.17 of its potential returns per unit of risk. Waste Connections is currently generating about -0.11 per unit of risk. 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

WillScot Mobile Mini  vs.  Waste Connections

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.

Waste Connections

Risk-Adjusted Performance

Very Weak

Over the last 90 days Waste Connections has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with WillScot Mobile and Waste Connections

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

The idea behind WillScot Mobile Mini and Waste Connections 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.