Correlation Between Safestore Holdings and PUBLIC STORAGE
Can any of the company-specific risk be diversified away by investing in both Safestore Holdings 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 Safestore Holdings and PUBLIC STORAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safestore Holdings plc and PUBLIC STORAGE PRFO, you can compare the effects of market volatilities on Safestore Holdings 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 Safestore Holdings with a short position of PUBLIC STORAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safestore Holdings and PUBLIC STORAGE.
Diversification Opportunities for Safestore Holdings and PUBLIC STORAGE
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Safestore and PUBLIC is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Safestore Holdings plc 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 Safestore Holdings 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 Safestore Holdings plc 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 Safestore Holdings i.e., Safestore Holdings and PUBLIC STORAGE go up and down completely randomly.
Pair Corralation between Safestore Holdings and PUBLIC STORAGE
Assuming the 90 days horizon Safestore Holdings plc is expected to under-perform the PUBLIC STORAGE. In addition to that, Safestore Holdings is 2.26 times more volatile than PUBLIC STORAGE PRFO. It trades about -0.39 of its total potential returns per unit of risk. PUBLIC STORAGE PRFO is currently generating about -0.25 per unit of volatility. If you would invest 1,625 in PUBLIC STORAGE PRFO on September 25, 2024 and sell it today you would lose (65.00) from holding PUBLIC STORAGE PRFO or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Safestore Holdings plc vs. PUBLIC STORAGE PRFO
Performance |
| Timeline |
| Safestore Holdings plc |
| PUBLIC STORAGE PRFO |
Safestore Holdings and PUBLIC STORAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safestore Holdings and PUBLIC STORAGE
The main advantage of trading using opposite Safestore Holdings and PUBLIC STORAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safestore Holdings 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.| Safestore Holdings vs. GRIFFIN MINING LTD | Safestore Holdings vs. QBE Insurance Group | Safestore Holdings vs. United Insurance Holdings | Safestore Holdings vs. Ping An Insurance |
| PUBLIC STORAGE vs. Safestore Holdings plc | PUBLIC STORAGE vs. EHEALTH | PUBLIC STORAGE vs. Varta AG | PUBLIC STORAGE vs. TRAVEL LEISURE DL 01 |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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