Correlation Between Aquagold International and National Storage
Can any of the company-specific risk be diversified away by investing in both Aquagold International 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 Aquagold International and National Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and National Storage Affiliates, you can compare the effects of market volatilities on Aquagold International 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 Aquagold International with a short position of National Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and National Storage.
Diversification Opportunities for Aquagold International and National Storage
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aquagold and National is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and National Storage Affiliates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Storage Aff and Aquagold International 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 Aquagold International 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 Aff has no effect on the direction of Aquagold International i.e., Aquagold International and National Storage go up and down completely randomly.
Pair Corralation between Aquagold International and National Storage
Given the investment horizon of 90 days Aquagold International is expected to under-perform the National Storage. In addition to that, Aquagold International is 10.02 times more volatile than National Storage Affiliates. It trades about -0.21 of its total potential returns per unit of risk. National Storage Affiliates is currently generating about 0.14 per unit of volatility. If you would invest 3,745 in National Storage Affiliates on December 1, 2024 and sell it today you would earn a total of 117.00 from holding National Storage Affiliates or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aquagold International vs. National Storage Affiliates
Performance |
| Timeline |
| Aquagold International |
| National Storage Aff |
Aquagold International and National Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and National Storage
The main advantage of trading using opposite Aquagold International and National Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International 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.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| National Storage vs. Extra Space Storage | National Storage vs. Americold Realty Trust | National Storage vs. Public Storage | National Storage vs. Terreno Realty |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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