Correlation Between Public Storage and Raymond James
Can any of the company-specific risk be diversified away by investing in both Public Storage and Raymond James 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 Public Storage and Raymond James into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Storage and Raymond James Financial, you can compare the effects of market volatilities on Public Storage and Raymond James 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 Public Storage with a short position of Raymond James. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Storage and Raymond James.
Diversification Opportunities for Public Storage and Raymond James
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Public and Raymond is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Public Storage and Raymond James Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raymond James Financial and Public Storage 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 Public Storage are associated (or correlated) with Raymond James. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raymond James Financial has no effect on the direction of Public Storage i.e., Public Storage and Raymond James go up and down completely randomly.
Pair Corralation between Public Storage and Raymond James
Assuming the 90 days trading horizon Public Storage is expected to under-perform the Raymond James. But the stock apears to be less risky and, when comparing its historical volatility, Public Storage is 1.62 times less risky than Raymond James. The stock trades about -0.14 of its potential returns per unit of risk. The Raymond James Financial is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 15,658 in Raymond James Financial on October 25, 2024 and sell it today you would earn a total of 1,344 from holding Raymond James Financial or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.0% |
| Values | Daily Returns |
Public Storage vs. Raymond James Financial
Performance |
| Timeline |
| Public Storage |
| Raymond James Financial |
Public Storage and Raymond James Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Storage and Raymond James
The main advantage of trading using opposite Public Storage and Raymond James positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Storage position performs unexpectedly, Raymond James 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 Raymond James will offset losses from the drop in Raymond James' long position.| Public Storage vs. Toyota Motor Corp | Public Storage vs. SoftBank Group Corp | Public Storage vs. OTP Bank Nyrt | Public Storage vs. ONEOK Inc |
| Raymond James vs. Smithson Investment Trust | Raymond James vs. EJF Investments | Raymond James vs. Samsung Electronics Co | Raymond James vs. CleanTech Lithium plc |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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