Correlation Between CENTURIA OFFICE and Public Storage
Can any of the company-specific risk be diversified away by investing in both CENTURIA OFFICE 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 CENTURIA OFFICE and Public Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CENTURIA OFFICE REIT and Public Storage, you can compare the effects of market volatilities on CENTURIA OFFICE 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 CENTURIA OFFICE with a short position of Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of CENTURIA OFFICE and Public Storage.
Diversification Opportunities for CENTURIA OFFICE and Public Storage
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CENTURIA and Public is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding CENTURIA OFFICE REIT and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage and CENTURIA OFFICE 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 CENTURIA OFFICE REIT 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 CENTURIA OFFICE i.e., CENTURIA OFFICE and Public Storage go up and down completely randomly.
Pair Corralation between CENTURIA OFFICE and Public Storage
Assuming the 90 days horizon CENTURIA OFFICE is expected to generate 3.85 times less return on investment than Public Storage. In addition to that, CENTURIA OFFICE is 1.05 times more volatile than Public Storage. It trades about 0.05 of its total potential returns per unit of risk. Public Storage is currently generating about 0.18 per unit of volatility. If you would invest 23,888 in Public Storage on August 28, 2024 and sell it today you would earn a total of 9,032 from holding Public Storage or generate 37.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
CENTURIA OFFICE REIT vs. Public Storage
Performance |
| Timeline |
| CENTURIA OFFICE REIT |
| Public Storage |
CENTURIA OFFICE and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CENTURIA OFFICE and Public Storage
The main advantage of trading using opposite CENTURIA OFFICE and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CENTURIA OFFICE 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.| CENTURIA OFFICE vs. Apple Inc | CENTURIA OFFICE vs. Apple Inc | CENTURIA OFFICE vs. Apple Inc | CENTURIA OFFICE vs. Apple Inc |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges |