Correlation Between National Storage and Life Storage
Can any of the company-specific risk be diversified away by investing in both National Storage and Life 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 National Storage and Life Storage 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 Life Storage, you can compare the effects of market volatilities on National Storage and Life 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 National Storage with a short position of Life Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Storage and Life Storage.
Diversification Opportunities for National Storage and Life Storage
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between National and Life is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding National Storage Affiliates and Life Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Storage 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 Life Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Storage has no effect on the direction of National Storage i.e., National Storage and Life Storage go up and down completely randomly.
Pair Corralation between National Storage and Life Storage
If you would invest 4,302 in National Storage Affiliates on August 27, 2024 and sell it today you would earn a total of 212.00 from holding National Storage Affiliates or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
National Storage Affiliates vs. Life Storage
Performance |
| Timeline |
| National Storage Aff |
| Life Storage |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
National Storage and Life Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Storage and Life Storage
The main advantage of trading using opposite National Storage and Life Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Storage position performs unexpectedly, Life 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 Life Storage will offset losses from the drop in Life Storage's long position.| National Storage vs. Extra Space Storage | National Storage vs. Americold Realty Trust | National Storage vs. Public Storage | National Storage vs. Terreno Realty |
| Life Storage vs. Public Storage | Life Storage vs. CubeSmart | Life Storage vs. National Storage Affiliates | Life Storage vs. Prologis |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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