Correlation Between National Storage and Sartorius Stedim
Can any of the company-specific risk be diversified away by investing in both National Storage and Sartorius Stedim 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 National Storage and Sartorius Stedim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Storage Affiliates and Sartorius Stedim Biotech, you can compare the effects of market volatilities on National Storage and Sartorius Stedim 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 National Storage with a short position of Sartorius Stedim. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Storage and Sartorius Stedim.
Diversification Opportunities for National Storage and Sartorius Stedim
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and Sartorius is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding National Storage Affiliates and Sartorius Stedim Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sartorius Stedim Biotech and National 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 National Storage Affiliates are associated (or correlated) with Sartorius Stedim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sartorius Stedim Biotech has no effect on the direction of National Storage i.e., National Storage and Sartorius Stedim go up and down completely randomly.
Pair Corralation between National Storage and Sartorius Stedim
Assuming the 90 days horizon National Storage Affiliates is expected to generate 0.49 times more return on investment than Sartorius Stedim. However, National Storage Affiliates is 2.03 times less risky than Sartorius Stedim. It trades about -0.01 of its potential returns per unit of risk. Sartorius Stedim Biotech is currently generating about -0.01 per unit of risk. If you would invest 4,163 in National Storage Affiliates on September 12, 2024 and sell it today you would lose (72.00) from holding National Storage Affiliates or give up 1.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Storage Affiliates vs. Sartorius Stedim Biotech
Performance |
| Timeline |
| National Storage Aff |
| Sartorius Stedim Biotech |
National Storage and Sartorius Stedim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Storage and Sartorius Stedim
The main advantage of trading using opposite National Storage and Sartorius Stedim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Storage position performs unexpectedly, Sartorius Stedim 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 Sartorius Stedim will offset losses from the drop in Sartorius Stedim's long position.| National Storage vs. Extra Space Storage | National Storage vs. REXFORD INDREALTY DL 01 | National Storage vs. CubeSmart | National Storage vs. First Industrial Realty |
| Sartorius Stedim vs. ELECTRONIC ARTS | Sartorius Stedim vs. Electronic Arts | Sartorius Stedim vs. Transportadora de Gas | Sartorius Stedim vs. SCIENCE IN SPORT |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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