Correlation Between National Storage and MYFAIR GOLD
Can any of the company-specific risk be diversified away by investing in both National Storage and MYFAIR GOLD 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 MYFAIR GOLD 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 MYFAIR GOLD P, you can compare the effects of market volatilities on National Storage and MYFAIR GOLD 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 MYFAIR GOLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Storage and MYFAIR GOLD.
Diversification Opportunities for National Storage and MYFAIR GOLD
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and MYFAIR is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding National Storage Affiliates and MYFAIR GOLD P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYFAIR GOLD P 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 MYFAIR GOLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYFAIR GOLD P has no effect on the direction of National Storage i.e., National Storage and MYFAIR GOLD go up and down completely randomly.
Pair Corralation between National Storage and MYFAIR GOLD
Assuming the 90 days horizon National Storage Affiliates is expected to generate 0.28 times more return on investment than MYFAIR GOLD. However, National Storage Affiliates is 3.55 times less risky than MYFAIR GOLD. It trades about 0.05 of its potential returns per unit of risk. MYFAIR GOLD P is currently generating about -0.05 per unit of risk. If you would invest 4,042 in National Storage Affiliates on September 13, 2024 and sell it today you would earn a total of 49.00 from holding National Storage Affiliates or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Storage Affiliates vs. MYFAIR GOLD P
Performance |
| Timeline |
| National Storage Aff |
| MYFAIR GOLD P |
National Storage and MYFAIR GOLD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Storage and MYFAIR GOLD
The main advantage of trading using opposite National Storage and MYFAIR GOLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Storage position performs unexpectedly, MYFAIR GOLD 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 MYFAIR GOLD will offset losses from the drop in MYFAIR GOLD'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 |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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