Correlation Between National Storage and Adidas AG
Can any of the company-specific risk be diversified away by investing in both National Storage and Adidas AG 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 Adidas AG 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 adidas AG, you can compare the effects of market volatilities on National Storage and Adidas AG 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 Adidas AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Storage and Adidas AG.
Diversification Opportunities for National Storage and Adidas AG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Adidas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Storage Affiliates and adidas AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on adidas AG 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 Adidas AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of adidas AG has no effect on the direction of National Storage i.e., National Storage and Adidas AG go up and down completely randomly.
Pair Corralation between National Storage and Adidas AG
If you would invest 3,583 in National Storage Affiliates on November 30, 2024 and sell it today you would earn a total of 46.00 from holding National Storage Affiliates or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
National Storage Affiliates vs. adidas AG
Performance |
| Timeline |
| National Storage Aff |
| adidas AG |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
National Storage and Adidas AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Storage and Adidas AG
The main advantage of trading using opposite National Storage and Adidas AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Storage position performs unexpectedly, Adidas AG 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 Adidas AG will offset losses from the drop in Adidas AG's long position.| National Storage vs. DELTA AIR LINES | National Storage vs. NORWEGIAN AIR SHUT | National Storage vs. Algonquin Power Utilities | National Storage vs. CHINA SOUTHN AIR H |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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