Correlation Between GigaMedia and PUBLIC STORAGE
Can any of the company-specific risk be diversified away by investing in both GigaMedia 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 GigaMedia and PUBLIC STORAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GigaMedia and PUBLIC STORAGE PRFO, you can compare the effects of market volatilities on GigaMedia 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 GigaMedia with a short position of PUBLIC STORAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaMedia and PUBLIC STORAGE.
Diversification Opportunities for GigaMedia and PUBLIC STORAGE
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GigaMedia and PUBLIC is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding GigaMedia and PUBLIC STORAGE PRFO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PUBLIC STORAGE PRFO and GigaMedia 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 GigaMedia 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 PRFO has no effect on the direction of GigaMedia i.e., GigaMedia and PUBLIC STORAGE go up and down completely randomly.
Pair Corralation between GigaMedia and PUBLIC STORAGE
Assuming the 90 days trading horizon GigaMedia is expected to generate 11.86 times less return on investment than PUBLIC STORAGE. In addition to that, GigaMedia is 1.42 times more volatile than PUBLIC STORAGE PRFO. It trades about 0.0 of its total potential returns per unit of risk. PUBLIC STORAGE PRFO is currently generating about 0.03 per unit of volatility. If you would invest 1,497 in PUBLIC STORAGE PRFO on September 1, 2024 and sell it today you would earn a total of 153.00 from holding PUBLIC STORAGE PRFO or generate 10.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GigaMedia vs. PUBLIC STORAGE PRFO
Performance |
| Timeline |
| GigaMedia |
| PUBLIC STORAGE PRFO |
GigaMedia and PUBLIC STORAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaMedia and PUBLIC STORAGE
The main advantage of trading using opposite GigaMedia and PUBLIC STORAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaMedia 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.| GigaMedia vs. Charter Communications | GigaMedia vs. COMBA TELECOM SYST | GigaMedia vs. Singapore Telecommunications Limited | GigaMedia vs. QUEEN S ROAD |
| PUBLIC STORAGE vs. Lyxor 1 | PUBLIC STORAGE vs. Xtrackers ShortDAX | PUBLIC STORAGE vs. Xtrackers LevDAX | PUBLIC STORAGE vs. Superior Plus Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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