Correlation Between National Storage and Rexford Industrial
Can any of the company-specific risk be diversified away by investing in both National 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 National 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 National Storage Affiliates and Rexford Industrial Realty, you can compare the effects of market volatilities on National 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 National Storage with a short position of Rexford Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Storage and Rexford Industrial.
Diversification Opportunities for National Storage and Rexford Industrial
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between National and Rexford is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding National Storage Affiliates 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 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 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 National Storage i.e., National Storage and Rexford Industrial go up and down completely randomly.
Pair Corralation between National Storage and Rexford Industrial
Considering the 90-day investment horizon National Storage Affiliates is expected to generate 1.11 times more return on investment than Rexford Industrial. However, National Storage is 1.11 times more volatile than Rexford Industrial Realty. It trades about 0.15 of its potential returns per unit of risk. Rexford Industrial Realty is currently generating about -0.1 per unit of risk. 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Storage Affiliates vs. Rexford Industrial Realty
Performance |
| Timeline |
| National Storage Aff |
| Rexford Industrial Realty |
National Storage and Rexford Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Storage and Rexford Industrial
The main advantage of trading using opposite National Storage and Rexford Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National 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.| National Storage vs. Extra Space Storage | National Storage vs. Americold Realty Trust | National Storage vs. Public Storage | National Storage vs. Terreno Realty |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |