Correlation Between Extra Space and Cresud SACIF
Can any of the company-specific risk be diversified away by investing in both Extra Space and Cresud SACIF 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 Extra Space and Cresud SACIF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Extra Space Storage and Cresud SACIF y, you can compare the effects of market volatilities on Extra Space and Cresud SACIF 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 Extra Space with a short position of Cresud SACIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Extra Space and Cresud SACIF.
Diversification Opportunities for Extra Space and Cresud SACIF
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Extra and Cresud is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Extra Space Storage and Cresud SACIF y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cresud SACIF y and Extra Space 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 Extra Space Storage are associated (or correlated) with Cresud SACIF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cresud SACIF y has no effect on the direction of Extra Space i.e., Extra Space and Cresud SACIF go up and down completely randomly.
Pair Corralation between Extra Space and Cresud SACIF
Considering the 90-day investment horizon Extra Space Storage is expected to under-perform the Cresud SACIF. But the stock apears to be less risky and, when comparing its historical volatility, Extra Space Storage is 2.28 times less risky than Cresud SACIF. The stock trades about -0.08 of its potential returns per unit of risk. The Cresud SACIF y is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,132 in Cresud SACIF y on November 27, 2024 and sell it today you would lose (55.00) from holding Cresud SACIF y or give up 4.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Extra Space Storage vs. Cresud SACIF y
Performance |
| Timeline |
| Extra Space Storage |
| Cresud SACIF y |
Extra Space and Cresud SACIF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Extra Space and Cresud SACIF
The main advantage of trading using opposite Extra Space and Cresud SACIF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Extra Space position performs unexpectedly, Cresud SACIF 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 Cresud SACIF will offset losses from the drop in Cresud SACIF's long position.| Extra Space vs. CubeSmart | Extra Space vs. National Storage Affiliates | Extra Space vs. Public Storage | Extra Space vs. EastGroup Properties |
| Cresud SACIF vs. Griffon | Cresud SACIF vs. Matthews International | Cresud SACIF vs. Valmont Industries | Cresud SACIF vs. Steel Partners Holdings |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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