Correlation Between Innovative Industrial and CubeSmart
Can any of the company-specific risk be diversified away by investing in both Innovative Industrial and CubeSmart 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 Innovative Industrial and CubeSmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovative Industrial Properties and CubeSmart, you can compare the effects of market volatilities on Innovative Industrial and CubeSmart 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 Innovative Industrial with a short position of CubeSmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative Industrial and CubeSmart.
Diversification Opportunities for Innovative Industrial and CubeSmart
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Innovative and CubeSmart is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Innovative Industrial Properti and CubeSmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CubeSmart and Innovative Industrial 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 Innovative Industrial Properties are associated (or correlated) with CubeSmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CubeSmart has no effect on the direction of Innovative Industrial i.e., Innovative Industrial and CubeSmart go up and down completely randomly.
Pair Corralation between Innovative Industrial and CubeSmart
Given the investment horizon of 90 days Innovative Industrial Properties is expected to generate 2.18 times more return on investment than CubeSmart. However, Innovative Industrial is 2.18 times more volatile than CubeSmart. It trades about 0.22 of its potential returns per unit of risk. CubeSmart is currently generating about 0.1 per unit of risk. If you would invest 6,544 in Innovative Industrial Properties on November 9, 2024 and sell it today you would earn a total of 859.00 from holding Innovative Industrial Properties or generate 13.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovative Industrial Properti vs. CubeSmart
Performance |
| Timeline |
| Innovative Industrial |
| CubeSmart |
Innovative Industrial and CubeSmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative Industrial and CubeSmart
The main advantage of trading using opposite Innovative Industrial and CubeSmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative Industrial position performs unexpectedly, CubeSmart 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 CubeSmart will offset losses from the drop in CubeSmart's long position.| Innovative Industrial vs. Prologis | Innovative Industrial vs. Public Storage | Innovative Industrial vs. Extra Space Storage | Innovative Industrial vs. CubeSmart |
| CubeSmart vs. Public Storage | CubeSmart vs. National Storage Affiliates | CubeSmart vs. Prologis | CubeSmart vs. Extra Space Storage |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |