Correlation Between LPKF Laser and PUBLIC STORAGE
Can any of the company-specific risk be diversified away by investing in both LPKF Laser 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 LPKF Laser and PUBLIC STORAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LPKF Laser Electronics and PUBLIC STORAGE PRFO, you can compare the effects of market volatilities on LPKF Laser 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 LPKF Laser with a short position of PUBLIC STORAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of LPKF Laser and PUBLIC STORAGE.
Diversification Opportunities for LPKF Laser and PUBLIC STORAGE
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LPKF and PUBLIC is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding LPKF Laser Electronics 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 LPKF Laser 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 LPKF Laser Electronics 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 LPKF Laser i.e., LPKF Laser and PUBLIC STORAGE go up and down completely randomly.
Pair Corralation between LPKF Laser and PUBLIC STORAGE
Assuming the 90 days horizon LPKF Laser Electronics is expected to under-perform the PUBLIC STORAGE. In addition to that, LPKF Laser is 2.7 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 0.04 per unit of volatility. If you would invest 1,397 in PUBLIC STORAGE PRFO on September 13, 2024 and sell it today you would earn a total of 233.00 from holding PUBLIC STORAGE PRFO or generate 16.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LPKF Laser Electronics vs. PUBLIC STORAGE PRFO
Performance |
| Timeline |
| LPKF Laser Electronics |
| PUBLIC STORAGE PRFO |
LPKF Laser and PUBLIC STORAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LPKF Laser and PUBLIC STORAGE
The main advantage of trading using opposite LPKF Laser and PUBLIC STORAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LPKF Laser 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.| LPKF Laser vs. Schneider Electric SE | LPKF Laser vs. Superior Plus Corp | LPKF Laser vs. SIVERS SEMICONDUCTORS AB | LPKF Laser vs. Norsk Hydro ASA |
| PUBLIC STORAGE vs. Xtrackers LevDAX | PUBLIC STORAGE vs. Xtrackers ShortDAX | PUBLIC STORAGE vs. Lyxor 1 | PUBLIC STORAGE vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |