Correlation Between AUCKLAND INTL and Public Storage
Can any of the company-specific risk be diversified away by investing in both AUCKLAND INTL 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 AUCKLAND INTL and Public Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AUCKLAND INTL AIRPORT and Public Storage, you can compare the effects of market volatilities on AUCKLAND INTL 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 AUCKLAND INTL with a short position of Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUCKLAND INTL and Public Storage.
Diversification Opportunities for AUCKLAND INTL and Public Storage
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AUCKLAND and Public is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding AUCKLAND INTL AIRPORT and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage and AUCKLAND INTL 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 AUCKLAND INTL AIRPORT 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 AUCKLAND INTL i.e., AUCKLAND INTL and Public Storage go up and down completely randomly.
Pair Corralation between AUCKLAND INTL and Public Storage
Assuming the 90 days trading horizon AUCKLAND INTL AIRPORT is expected to generate 1.11 times more return on investment than Public Storage. However, AUCKLAND INTL is 1.11 times more volatile than Public Storage. It trades about 0.09 of its potential returns per unit of risk. Public Storage is currently generating about -0.02 per unit of risk. If you would invest 410.00 in AUCKLAND INTL AIRPORT on September 12, 2024 and sell it today you would earn a total of 36.00 from holding AUCKLAND INTL AIRPORT or generate 8.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
AUCKLAND INTL AIRPORT vs. Public Storage
Performance |
| Timeline |
| AUCKLAND INTL AIRPORT |
| Public Storage |
AUCKLAND INTL and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUCKLAND INTL and Public Storage
The main advantage of trading using opposite AUCKLAND INTL and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUCKLAND INTL 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.| AUCKLAND INTL vs. EAGLE MATERIALS | AUCKLAND INTL vs. INTERSHOP Communications Aktiengesellschaft | AUCKLAND INTL vs. SK TELECOM TDADR | AUCKLAND INTL vs. Zoom Video Communications |
| Public Storage vs. Prologis | Public Storage vs. SEGRO Plc | Public Storage vs. Yara International ASA | Public Storage vs. EastGroup Properties |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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