Correlation Between National Storage and Innovative Industrial
Can any of the company-specific risk be diversified away by investing in both National Storage and Innovative 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 National Storage and Innovative Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Storage Affiliates and Innovative Industrial Properties, you can compare the effects of market volatilities on National Storage and Innovative 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 National Storage with a short position of Innovative Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Storage and Innovative Industrial.
Diversification Opportunities for National Storage and Innovative Industrial
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between National and Innovative is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding National Storage Affiliates and Innovative Industrial Properti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative Industrial and National 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 National Storage Affiliates are associated (or correlated) with Innovative Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative Industrial has no effect on the direction of National Storage i.e., National Storage and Innovative Industrial go up and down completely randomly.
Pair Corralation between National Storage and Innovative Industrial
Assuming the 90 days trading horizon National Storage is expected to generate 2.07 times less return on investment than Innovative Industrial. In addition to that, National Storage is 1.14 times more volatile than Innovative Industrial Properties. It trades about 0.01 of its total potential returns per unit of risk. Innovative Industrial Properties is currently generating about 0.01 per unit of volatility. If you would invest 10,639 in Innovative Industrial Properties on August 24, 2024 and sell it today you would earn a total of 73.00 from holding Innovative Industrial Properties or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 16.53% |
| Values | Daily Returns |
National Storage Affiliates vs. Innovative Industrial Properti
Performance |
| Timeline |
| National Storage Aff |
| Innovative Industrial |
National Storage and Innovative Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Storage and Innovative Industrial
The main advantage of trading using opposite National Storage and Innovative Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Storage position performs unexpectedly, Innovative 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 Innovative Industrial will offset losses from the drop in Innovative Industrial's long position.| National Storage vs. National Storage Affiliates | National Storage vs. Innovative Industrial Properties | National Storage vs. Industrial Logistics Properties | National Storage vs. Public Storage |
| Innovative Industrial vs. Prologis | Innovative Industrial vs. Public Storage | Innovative Industrial vs. Extra Space Storage | Innovative Industrial vs. CubeSmart |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Stocks Directory Find actively traded stocks across global markets |