Correlation Between National Storage and DICKER DATA
Can any of the company-specific risk be diversified away by investing in both National Storage and DICKER DATA 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 DICKER DATA 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 DICKER DATA LTD, you can compare the effects of market volatilities on National Storage and DICKER DATA 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 DICKER DATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Storage and DICKER DATA.
Diversification Opportunities for National Storage and DICKER DATA
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between National and DICKER is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding National Storage Affiliates and DICKER DATA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DICKER DATA LTD 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 DICKER DATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DICKER DATA LTD has no effect on the direction of National Storage i.e., National Storage and DICKER DATA go up and down completely randomly.
Pair Corralation between National Storage and DICKER DATA
Assuming the 90 days horizon National Storage Affiliates is expected to generate 0.57 times more return on investment than DICKER DATA. However, National Storage Affiliates is 1.74 times less risky than DICKER DATA. It trades about 0.19 of its potential returns per unit of risk. DICKER DATA LTD is currently generating about 0.03 per unit of risk. If you would invest 3,470 in National Storage Affiliates on November 28, 2024 and sell it today you would earn a total of 237.00 from holding National Storage Affiliates or generate 6.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
National Storage Affiliates vs. DICKER DATA LTD
Performance |
| Timeline |
| National Storage Aff |
| DICKER DATA LTD |
National Storage and DICKER DATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Storage and DICKER DATA
The main advantage of trading using opposite National Storage and DICKER DATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Storage position performs unexpectedly, DICKER DATA 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 DICKER DATA will offset losses from the drop in DICKER DATA'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 |
| DICKER DATA vs. PennantPark Investment | DICKER DATA vs. New Residential Investment | DICKER DATA vs. Cogent Communications Holdings | DICKER DATA vs. Spirent Communications plc |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |