Correlation Between Life Storage and Rexford Industrial
Can any of the company-specific risk be diversified away by investing in both Life Storage and Rexford Industrial 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 Life Storage and Rexford Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Life Storage and Rexford Industrial Realty, you can compare the effects of market volatilities on Life Storage and Rexford Industrial 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 Life Storage with a short position of Rexford Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Storage and Rexford Industrial.
Diversification Opportunities for Life Storage and Rexford Industrial
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Life and Rexford is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Life Storage and Rexford Industrial Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rexford Industrial Realty and Life Storage 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 Life Storage are associated (or correlated) with Rexford Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rexford Industrial Realty has no effect on the direction of Life Storage i.e., Life Storage and Rexford Industrial go up and down completely randomly.
Pair Corralation between Life Storage and Rexford Industrial
If you would invest 13,310 in Life Storage on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Life Storage or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Life Storage vs. Rexford Industrial Realty
Performance |
| Timeline |
| Life Storage |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Rexford Industrial Realty |
Life Storage and Rexford Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Storage and Rexford Industrial
The main advantage of trading using opposite Life Storage and Rexford Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Storage position performs unexpectedly, Rexford Industrial 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 Rexford Industrial will offset losses from the drop in Rexford Industrial's long position.| Life Storage vs. Public Storage | Life Storage vs. CubeSmart | Life Storage vs. National Storage Affiliates | Life Storage vs. Prologis |
| Rexford Industrial vs. Plymouth Industrial REIT | Rexford Industrial vs. EastGroup Properties | Rexford Industrial vs. LXP Industrial Trust | Rexford Industrial vs. Terreno Realty |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |