Correlation Between Global Net and PS Business
Can any of the company-specific risk be diversified away by investing in both Global Net and PS Business 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 Global Net and PS Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Net Lease and PS Business Parks, you can compare the effects of market volatilities on Global Net and PS Business 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 Global Net with a short position of PS Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Net and PS Business.
Diversification Opportunities for Global Net and PS Business
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Global and PSBXP is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Global Net Lease and PS Business Parks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PS Business Parks and Global Net 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 Global Net Lease are associated (or correlated) with PS Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PS Business Parks has no effect on the direction of Global Net i.e., Global Net and PS Business go up and down completely randomly.
Pair Corralation between Global Net and PS Business
If you would invest 1,735 in Global Net Lease on September 12, 2024 and sell it today you would earn a total of 415.00 from holding Global Net Lease or generate 23.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.3% |
| Values | Daily Returns |
Global Net Lease vs. PS Business Parks
Performance |
| Timeline |
| Global Net Lease |
| PS Business Parks |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global Net and PS Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Net and PS Business
The main advantage of trading using opposite Global Net and PS Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Net position performs unexpectedly, PS Business 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 PS Business will offset losses from the drop in PS Business' long position.| Global Net vs. Global Net Lease | Global Net vs. Global Medical REIT | Global Net vs. City Office REIT | Global Net vs. ARMOUR Residential REIT |
| PS Business vs. Jabil Circuit | PS Business vs. Everspin Technologies | PS Business vs. Vishay Precision Group | PS Business vs. NetEase |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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