Correlation Between Chiba Bank and Public Storage
Can any of the company-specific risk be diversified away by investing in both Chiba Bank 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 Chiba Bank and Public Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chiba Bank and Public Storage, you can compare the effects of market volatilities on Chiba Bank 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 Chiba Bank with a short position of Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chiba Bank and Public Storage.
Diversification Opportunities for Chiba Bank and Public Storage
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chiba and Public is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Chiba Bank and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage and Chiba Bank 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 Chiba 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 Chiba Bank i.e., Chiba Bank and Public Storage go up and down completely randomly.
Pair Corralation between Chiba Bank and Public Storage
Assuming the 90 days horizon Chiba Bank is expected to generate 1.17 times more return on investment than Public Storage. However, Chiba Bank is 1.17 times more volatile than Public Storage. It trades about 0.27 of its potential returns per unit of risk. Public Storage is currently generating about 0.09 per unit of risk. If you would invest 660.00 in Chiba Bank on August 28, 2024 and sell it today you would earn a total of 75.00 from holding Chiba Bank or generate 11.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chiba Bank vs. Public Storage
Performance |
| Timeline |
| Chiba Bank |
| Public Storage |
Chiba Bank and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chiba Bank and Public Storage
The main advantage of trading using opposite Chiba Bank and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chiba Bank 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.| Chiba Bank vs. COMMERCIAL VEHICLE | Chiba Bank vs. CarsalesCom | Chiba Bank vs. Motorcar Parts of | Chiba Bank vs. Daito Trust Construction |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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