Correlation Between Prologis and Global Self
Can any of the company-specific risk be diversified away by investing in both Prologis and Global Self 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 Prologis and Global Self into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prologis and Global Self Storage, you can compare the effects of market volatilities on Prologis and Global Self 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 Prologis with a short position of Global Self. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prologis and Global Self.
Diversification Opportunities for Prologis and Global Self
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Prologis and Global is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Prologis and Global Self Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Self Storage and Prologis 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 Prologis are associated (or correlated) with Global Self. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Self Storage has no effect on the direction of Prologis i.e., Prologis and Global Self go up and down completely randomly.
Pair Corralation between Prologis and Global Self
Considering the 90-day investment horizon Prologis is expected to generate 1.59 times less return on investment than Global Self. In addition to that, Prologis is 1.13 times more volatile than Global Self Storage. It trades about 0.07 of its total potential returns per unit of risk. Global Self Storage is currently generating about 0.13 per unit of volatility. If you would invest 497.00 in Global Self Storage on August 30, 2024 and sell it today you would earn a total of 18.00 from holding Global Self Storage or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prologis vs. Global Self Storage
Performance |
| Timeline |
| Prologis |
| Global Self Storage |
Prologis and Global Self Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prologis and Global Self
The main advantage of trading using opposite Prologis and Global Self positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prologis position performs unexpectedly, Global Self 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 Global Self will offset losses from the drop in Global Self's long position.| Prologis vs. Extra Space Storage | Prologis vs. CubeSmart | Prologis vs. STAG Industrial | Prologis vs. Innovative Industrial Properties |
| Global Self vs. LXP Industrial Trust | Global Self vs. First Industrial Realty | Global Self vs. Plymouth Industrial REIT | Global Self 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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