Correlation Between Public Storage and Cembra Money
Can any of the company-specific risk be diversified away by investing in both Public Storage and Cembra Money 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 Cembra Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Storage and Cembra Money Bank, you can compare the effects of market volatilities on Public Storage and Cembra Money 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 Cembra Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Storage and Cembra Money.
Diversification Opportunities for Public Storage and Cembra Money
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Public and Cembra is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Public Storage and Cembra Money Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cembra Money Bank 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 Cembra Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cembra Money Bank has no effect on the direction of Public Storage i.e., Public Storage and Cembra Money go up and down completely randomly.
Pair Corralation between Public Storage and Cembra Money
Assuming the 90 days trading horizon Public Storage is expected to generate 1.95 times less return on investment than Cembra Money. In addition to that, Public Storage is 1.27 times more volatile than Cembra Money Bank. It trades about 0.04 of its total potential returns per unit of risk. Cembra Money Bank is currently generating about 0.1 per unit of volatility. If you would invest 6,245 in Cembra Money Bank on September 14, 2024 and sell it today you would earn a total of 1,840 from holding Cembra Money Bank or generate 29.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.81% |
| Values | Daily Returns |
Public Storage vs. Cembra Money Bank
Performance |
| Timeline |
| Public Storage |
| Cembra Money Bank |
Public Storage and Cembra Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Storage and Cembra Money
The main advantage of trading using opposite Public Storage and Cembra Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Storage position performs unexpectedly, Cembra Money 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 Cembra Money will offset losses from the drop in Cembra Money's long position.| Public Storage vs. Hilton Food Group | Public Storage vs. Ebro Foods | Public Storage vs. Grieg Seafood | Public Storage vs. Edita Food Industries |
| Cembra Money vs. Samsung Electronics Co | Cembra Money vs. Samsung Electronics Co | Cembra Money vs. Hyundai Motor | Cembra Money vs. Reliance Industries Ltd |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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