Correlation Between Abingdon Health and Public Storage
Can any of the company-specific risk be diversified away by investing in both Abingdon Health and Public Storage 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 Abingdon Health and Public Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abingdon Health Plc and Public Storage, you can compare the effects of market volatilities on Abingdon Health and Public Storage 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 Abingdon Health with a short position of Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abingdon Health and Public Storage.
Diversification Opportunities for Abingdon Health and Public Storage
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Abingdon and Public is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Abingdon Health Plc and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage and Abingdon Health 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 Abingdon Health Plc are associated (or correlated) with Public Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Storage has no effect on the direction of Abingdon Health i.e., Abingdon Health and Public Storage go up and down completely randomly.
Pair Corralation between Abingdon Health and Public Storage
Assuming the 90 days trading horizon Abingdon Health Plc is expected to under-perform the Public Storage. In addition to that, Abingdon Health is 2.97 times more volatile than Public Storage. It trades about 0.0 of its total potential returns per unit of risk. Public Storage is currently generating about 0.05 per unit of volatility. If you would invest 27,278 in Public Storage on August 31, 2024 and sell it today you would earn a total of 7,785 from holding Public Storage or generate 28.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Abingdon Health Plc vs. Public Storage
Performance |
| Timeline |
| Abingdon Health Plc |
| Public Storage |
Abingdon Health and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abingdon Health and Public Storage
The main advantage of trading using opposite Abingdon Health and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abingdon Health position performs unexpectedly, Public Storage 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 Public Storage will offset losses from the drop in Public Storage's long position.| Abingdon Health vs. Toyota Motor Corp | Abingdon Health vs. SoftBank Group Corp | Abingdon Health vs. State Bank of | Abingdon Health vs. MOL Hungarian Oil |
| Public Storage vs. Baker Steel Resources | Public Storage vs. Abingdon Health Plc | Public Storage vs. Inspiration Healthcare Group | Public Storage vs. Cardinal Health |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |