Correlation Between Americold Realty and Global Self
Can any of the company-specific risk be diversified away by investing in both Americold Realty and Global Self 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 Americold Realty and Global Self into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Americold Realty Trust and Global Self Storage, you can compare the effects of market volatilities on Americold Realty and Global Self 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 Americold Realty with a short position of Global Self. Check out your portfolio center. Please also check ongoing floating volatility patterns of Americold Realty and Global Self.
Diversification Opportunities for Americold Realty and Global Self
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Americold and Global is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Americold Realty Trust and Global Self Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Self Storage and Americold Realty 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 Americold Realty Trust are associated (or correlated) with Global Self. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Self Storage has no effect on the direction of Americold Realty i.e., Americold Realty and Global Self go up and down completely randomly.
Pair Corralation between Americold Realty and Global Self
Given the investment horizon of 90 days Americold Realty Trust is expected to under-perform the Global Self. In addition to that, Americold Realty is 2.0 times more volatile than Global Self Storage. It trades about -0.15 of its total potential returns per unit of risk. Global Self Storage is currently generating about 0.12 per unit of volatility. If you would invest 501.00 in Global Self Storage on August 28, 2024 and sell it today you would earn a total of 15.00 from holding Global Self Storage or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Americold Realty Trust vs. Global Self Storage
Performance |
| Timeline |
| Americold Realty Trust |
| Global Self Storage |
Americold Realty and Global Self Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Americold Realty and Global Self
The main advantage of trading using opposite Americold Realty and Global Self positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Americold Realty position performs unexpectedly, Global Self 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 Global Self will offset losses from the drop in Global Self's long position.| Americold Realty vs. Rexford Industrial Realty | Americold Realty vs. Terreno Realty | Americold Realty vs. First Industrial Realty | Americold Realty vs. Plymouth Industrial REIT |
| Global Self vs. LXP Industrial Trust | Global Self vs. First Industrial Realty | Global Self vs. Plymouth Industrial REIT | Global Self 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |