Correlation Between National Storage and Intel
Can any of the company-specific risk be diversified away by investing in both National Storage and Intel 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 Intel 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 Intel, you can compare the effects of market volatilities on National Storage and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Storage and Intel.
Diversification Opportunities for National Storage and Intel
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between National and Intel is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding National Storage Affiliates and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of National Storage i.e., National Storage and Intel go up and down completely randomly.
Pair Corralation between National Storage and Intel
Assuming the 90 days horizon National Storage Affiliates is expected to generate 0.59 times more return on investment than Intel. However, National Storage Affiliates is 1.69 times less risky than Intel. It trades about 0.03 of its potential returns per unit of risk. Intel is currently generating about 0.0 per unit of risk. If you would invest 3,090 in National Storage Affiliates on October 7, 2024 and sell it today you would earn a total of 529.00 from holding National Storage Affiliates or generate 17.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Storage Affiliates vs. Intel
Performance |
| Timeline |
| National Storage Aff |
| Intel |
National Storage and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Storage and Intel
The main advantage of trading using opposite National Storage and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Storage position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| National Storage vs. CubeSmart | National Storage vs. Montea Comm VA | National Storage vs. Superior Plus Corp | National Storage vs. NMI Holdings |
| Intel vs. Calibre Mining Corp | Intel vs. Western Copper and | Intel vs. FIREWEED METALS P | Intel vs. DXC Technology Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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