Correlation Between Actinogen Medical and National Storage
Can any of the company-specific risk be diversified away by investing in both Actinogen Medical and National 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 Actinogen Medical and National Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actinogen Medical and National Storage REIT, you can compare the effects of market volatilities on Actinogen Medical and National 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 Actinogen Medical with a short position of National Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actinogen Medical and National Storage.
Diversification Opportunities for Actinogen Medical and National Storage
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Actinogen and National is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Actinogen Medical and National Storage REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Storage REIT and Actinogen Medical 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 Actinogen Medical are associated (or correlated) with National Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Storage REIT has no effect on the direction of Actinogen Medical i.e., Actinogen Medical and National Storage go up and down completely randomly.
Pair Corralation between Actinogen Medical and National Storage
Assuming the 90 days trading horizon Actinogen Medical is expected to under-perform the National Storage. In addition to that, Actinogen Medical is 5.11 times more volatile than National Storage REIT. It trades about -0.15 of its total potential returns per unit of risk. National Storage REIT is currently generating about 0.06 per unit of volatility. If you would invest 239.00 in National Storage REIT on August 25, 2024 and sell it today you would earn a total of 9.00 from holding National Storage REIT or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Actinogen Medical vs. National Storage REIT
Performance |
| Timeline |
| Actinogen Medical |
| National Storage REIT |
Actinogen Medical and National Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Actinogen Medical and National Storage
The main advantage of trading using opposite Actinogen Medical and National Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actinogen Medical position performs unexpectedly, National 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 National Storage will offset losses from the drop in National Storage's long position.| Actinogen Medical vs. Treasury Wine Estates | Actinogen Medical vs. ARN Media Limited | Actinogen Medical vs. Catalyst Metals | Actinogen Medical vs. Charter Hall Retail |
| National Storage vs. Scentre Group | National Storage vs. Vicinity Centres Re | National Storage vs. Charter Hall Retail | National Storage vs. Cromwell Property Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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