Correlation Between Mulberry Group and Extra Space
Can any of the company-specific risk be diversified away by investing in both Mulberry Group and Extra Space 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 Mulberry Group and Extra Space into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mulberry Group PLC and Extra Space Storage, you can compare the effects of market volatilities on Mulberry Group and Extra Space 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 Mulberry Group with a short position of Extra Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mulberry Group and Extra Space.
Diversification Opportunities for Mulberry Group and Extra Space
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mulberry and Extra is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Mulberry Group PLC and Extra Space Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extra Space Storage and Mulberry Group 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 Mulberry Group PLC are associated (or correlated) with Extra Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extra Space Storage has no effect on the direction of Mulberry Group i.e., Mulberry Group and Extra Space go up and down completely randomly.
Pair Corralation between Mulberry Group and Extra Space
Assuming the 90 days trading horizon Mulberry Group PLC is expected to under-perform the Extra Space. In addition to that, Mulberry Group is 2.15 times more volatile than Extra Space Storage. It trades about -0.04 of its total potential returns per unit of risk. Extra Space Storage is currently generating about 0.07 per unit of volatility. If you would invest 12,014 in Extra Space Storage on September 3, 2024 and sell it today you would earn a total of 5,049 from holding Extra Space Storage or generate 42.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.03% |
| Values | Daily Returns |
Mulberry Group PLC vs. Extra Space Storage
Performance |
| Timeline |
| Mulberry Group PLC |
| Extra Space Storage |
Mulberry Group and Extra Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mulberry Group and Extra Space
The main advantage of trading using opposite Mulberry Group and Extra Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mulberry Group position performs unexpectedly, Extra Space 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 Extra Space will offset losses from the drop in Extra Space's long position.| Mulberry Group vs. Sabre Insurance Group | Mulberry Group vs. PureTech Health plc | Mulberry Group vs. Microchip Technology | Mulberry Group vs. Ashtead Technology Holdings |
| Extra Space vs. Gaztransport et Technigaz | Extra Space vs. Summit Materials Cl | Extra Space vs. DFS Furniture PLC | Extra Space vs. Fevertree Drinks Plc |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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