Correlation Between CDN IMPERIAL and Public Storage
Can any of the company-specific risk be diversified away by investing in both CDN IMPERIAL 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 CDN IMPERIAL and Public Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CDN IMPERIAL BANK and Public Storage, you can compare the effects of market volatilities on CDN IMPERIAL 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 CDN IMPERIAL with a short position of Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDN IMPERIAL and Public Storage.
Diversification Opportunities for CDN IMPERIAL and Public Storage
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between CDN and Public is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding CDN IMPERIAL BANK and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage and CDN IMPERIAL 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 CDN IMPERIAL BANK 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 CDN IMPERIAL i.e., CDN IMPERIAL and Public Storage go up and down completely randomly.
Pair Corralation between CDN IMPERIAL and Public Storage
Assuming the 90 days trading horizon CDN IMPERIAL BANK is expected to generate 0.8 times more return on investment than Public Storage. However, CDN IMPERIAL BANK is 1.25 times less risky than Public Storage. It trades about 0.19 of its potential returns per unit of risk. Public Storage is currently generating about 0.1 per unit of risk. If you would invest 3,628 in CDN IMPERIAL BANK on September 2, 2024 and sell it today you would earn a total of 2,491 from holding CDN IMPERIAL BANK or generate 68.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CDN IMPERIAL BANK vs. Public Storage
Performance |
| Timeline |
| CDN IMPERIAL BANK |
| Public Storage |
CDN IMPERIAL and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDN IMPERIAL and Public Storage
The main advantage of trading using opposite CDN IMPERIAL and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDN IMPERIAL 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.| CDN IMPERIAL vs. SIVERS SEMICONDUCTORS AB | CDN IMPERIAL vs. Darden Restaurants | CDN IMPERIAL vs. Reliance Steel Aluminum | CDN IMPERIAL vs. Q2M Managementberatung AG |
| Public Storage vs. GALENA MINING LTD | Public Storage vs. Monster Beverage Corp | Public Storage vs. Fevertree Drinks PLC | Public Storage vs. MAGNUM MINING EXP |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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