Correlation Between National Storage and Group 6
Can any of the company-specific risk be diversified away by investing in both National Storage and Group 6 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 Group 6 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Storage REIT and Group 6 Metals, you can compare the effects of market volatilities on National Storage and Group 6 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 Group 6. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Storage and Group 6.
Diversification Opportunities for National Storage and Group 6
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and Group is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding National Storage REIT and Group 6 Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group 6 Metals 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 REIT are associated (or correlated) with Group 6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group 6 Metals has no effect on the direction of National Storage i.e., National Storage and Group 6 go up and down completely randomly.
Pair Corralation between National Storage and Group 6
If you would invest 247.00 in National Storage REIT on August 29, 2024 and sell it today you would earn a total of 6.00 from holding National Storage REIT or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
National Storage REIT vs. Group 6 Metals
Performance |
| Timeline |
| National Storage REIT |
| Group 6 Metals |
National Storage and Group 6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Storage and Group 6
The main advantage of trading using opposite National Storage and Group 6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Storage position performs unexpectedly, Group 6 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 Group 6 will offset losses from the drop in Group 6's long position.| National Storage vs. Australian Unity Office | National Storage vs. Champion Iron | National Storage vs. Ridley | National Storage vs. Peel Mining |
| Group 6 vs. Northern Star Resources | Group 6 vs. Evolution Mining | Group 6 vs. Bluescope Steel | Group 6 vs. Sandfire Resources NL |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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