Correlation Between Carlton Investments and National Storage
Can any of the company-specific risk be diversified away by investing in both Carlton Investments 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 Carlton Investments and National Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlton Investments and National Storage REIT, you can compare the effects of market volatilities on Carlton Investments 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 Carlton Investments with a short position of National Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlton Investments and National Storage.
Diversification Opportunities for Carlton Investments and National Storage
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carlton and National is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Carlton Investments 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 Carlton Investments 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 Carlton Investments 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 Carlton Investments i.e., Carlton Investments and National Storage go up and down completely randomly.
Pair Corralation between Carlton Investments and National Storage
Assuming the 90 days trading horizon Carlton Investments is expected to generate 4.17 times less return on investment than National Storage. But when comparing it to its historical volatility, Carlton Investments is 1.43 times less risky than National Storage. It trades about 0.01 of its potential returns per unit of risk. National Storage REIT is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 210.00 in National Storage REIT on October 18, 2024 and sell it today you would earn a total of 22.00 from holding National Storage REIT or generate 10.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Carlton Investments vs. National Storage REIT
Performance |
| Timeline |
| Carlton Investments |
| National Storage REIT |
Carlton Investments and National Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlton Investments and National Storage
The main advantage of trading using opposite Carlton Investments and National Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlton Investments 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.| Carlton Investments vs. Technology One | Carlton Investments vs. Diversified United Investment | Carlton Investments vs. Retail Food Group | Carlton Investments vs. Queste Communications |
| National Storage vs. Carlton Investments | National Storage vs. Navigator Global Investments | National Storage vs. Perseus Mining | National Storage vs. Black Rock Mining |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |