Correlation Between Public Storage and Impax Asset
Can any of the company-specific risk be diversified away by investing in both Public Storage and Impax Asset 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 Impax Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Storage and Impax Asset Management, you can compare the effects of market volatilities on Public Storage and Impax Asset 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 Impax Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Storage and Impax Asset.
Diversification Opportunities for Public Storage and Impax Asset
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Public and Impax is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Public Storage and Impax Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impax Asset Management 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 Impax Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impax Asset Management has no effect on the direction of Public Storage i.e., Public Storage and Impax Asset go up and down completely randomly.
Pair Corralation between Public Storage and Impax Asset
Assuming the 90 days trading horizon Public Storage is expected to generate 0.53 times more return on investment than Impax Asset. However, Public Storage is 1.89 times less risky than Impax Asset. It trades about -0.32 of its potential returns per unit of risk. Impax Asset Management is currently generating about -0.27 per unit of risk. If you would invest 31,867 in Public Storage on October 16, 2024 and sell it today you would lose (2,962) from holding Public Storage or give up 9.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Public Storage vs. Impax Asset Management
Performance |
| Timeline |
| Public Storage |
| Impax Asset Management |
Public Storage and Impax Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Storage and Impax Asset
The main advantage of trading using opposite Public Storage and Impax Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Storage position performs unexpectedly, Impax Asset 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 Impax Asset will offset losses from the drop in Impax Asset's long position.| Public Storage vs. Monster Beverage Corp | Public Storage vs. Playtech Plc | Public Storage vs. Guild Esports Plc | Public Storage vs. Young Cos Brewery |
| Impax Asset vs. PureTech Health plc | Impax Asset vs. Micron Technology | Impax Asset vs. Zoom Video Communications | Impax Asset vs. Xeros Technology Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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