Correlation Between Hilton Food and Public Storage
Can any of the company-specific risk be diversified away by investing in both Hilton Food 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 Hilton Food and Public Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hilton Food Group and Public Storage, you can compare the effects of market volatilities on Hilton Food 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 Hilton Food with a short position of Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hilton Food and Public Storage.
Diversification Opportunities for Hilton Food and Public Storage
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hilton and Public is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Hilton Food Group and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage and Hilton Food 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 Hilton Food Group 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 has no effect on the direction of Hilton Food i.e., Hilton Food and Public Storage go up and down completely randomly.
Pair Corralation between Hilton Food and Public Storage
Assuming the 90 days trading horizon Hilton Food Group is expected to generate 0.99 times more return on investment than Public Storage. However, Hilton Food Group is 1.01 times less risky than Public Storage. It trades about 0.08 of its potential returns per unit of risk. Public Storage is currently generating about 0.08 per unit of risk. If you would invest 68,853 in Hilton Food Group on September 14, 2024 and sell it today you would earn a total of 21,747 from holding Hilton Food Group or generate 31.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.26% |
| Values | Daily Returns |
Hilton Food Group vs. Public Storage
Performance |
| Timeline |
| Hilton Food Group |
| Public Storage |
Hilton Food and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hilton Food and Public Storage
The main advantage of trading using opposite Hilton Food and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hilton Food 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.| Hilton Food vs. Samsung Electronics Co | Hilton Food vs. Samsung Electronics Co | Hilton Food vs. Hyundai Motor | Hilton Food vs. Toyota Motor Corp |
| Public Storage vs. Hilton Food Group | Public Storage vs. Ebro Foods | Public Storage vs. Grieg Seafood | Public Storage vs. Edita Food Industries |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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