Correlation Between Cembra Money and Public Storage
Can any of the company-specific risk be diversified away by investing in both Cembra Money and Public Storage 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 Cembra Money and Public Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cembra Money Bank and Public Storage, you can compare the effects of market volatilities on Cembra Money and Public Storage 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 Cembra Money with a short position of Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cembra Money and Public Storage.
Diversification Opportunities for Cembra Money and Public Storage
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cembra and Public is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Cembra Money Bank and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage and Cembra Money 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 Cembra Money Bank are associated (or correlated) with Public Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Storage has no effect on the direction of Cembra Money i.e., Cembra Money and Public Storage go up and down completely randomly.
Pair Corralation between Cembra Money and Public Storage
Assuming the 90 days trading horizon Cembra Money Bank is expected to generate 0.78 times more return on investment than Public Storage. However, Cembra Money Bank is 1.27 times less risky than Public Storage. It trades about 0.1 of its potential returns per unit of risk. Public Storage is currently generating about 0.04 per unit of risk. 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 |
Cembra Money Bank vs. Public Storage
Performance |
| Timeline |
| Cembra Money Bank |
| Public Storage |
Cembra Money and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cembra Money and Public Storage
The main advantage of trading using opposite Cembra Money and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cembra Money position performs unexpectedly, Public Storage 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 Public Storage will offset losses from the drop in Public Storage's long position.| Cembra Money vs. Samsung Electronics Co | Cembra Money vs. Samsung Electronics Co | Cembra Money vs. Hyundai Motor | Cembra Money vs. Reliance Industries Ltd |
| Public Storage vs. Hilton Food Group | Public Storage vs. Ebro Foods | Public Storage vs. Grieg Seafood | Public Storage vs. Edita Food Industries |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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