Correlation Between Public Storage and SmartStop Self
Can any of the company-specific risk be diversified away by investing in both Public Storage and SmartStop 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 Public Storage and SmartStop Self into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Storage and SmartStop Self Storage, you can compare the effects of market volatilities on Public Storage and SmartStop 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 Public Storage with a short position of SmartStop Self. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Storage and SmartStop Self.
Diversification Opportunities for Public Storage and SmartStop Self
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Public and SmartStop is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Public Storage and SmartStop Self Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartStop Self Storage and Public 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 Public Storage are associated (or correlated) with SmartStop Self. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartStop Self Storage has no effect on the direction of Public Storage i.e., Public Storage and SmartStop Self go up and down completely randomly.
Pair Corralation between Public Storage and SmartStop Self
Assuming the 90 days trading horizon Public Storage is expected to generate 0.19 times more return on investment than SmartStop Self. However, Public Storage is 5.28 times less risky than SmartStop Self. It trades about 0.04 of its potential returns per unit of risk. SmartStop Self Storage is currently generating about 0.0 per unit of risk. If you would invest 2,130 in Public Storage on September 13, 2024 and sell it today you would earn a total of 327.00 from holding Public Storage or generate 15.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Public Storage vs. SmartStop Self Storage
Performance |
| Timeline |
| Public Storage |
| SmartStop Self Storage |
Public Storage and SmartStop Self Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Storage and SmartStop Self
The main advantage of trading using opposite Public Storage and SmartStop Self positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Storage position performs unexpectedly, SmartStop 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 SmartStop Self will offset losses from the drop in SmartStop Self's long position.| Public Storage vs. Public Storage | Public Storage vs. Public Storage | Public Storage vs. Public Storage | Public Storage vs. Public Storage |
| SmartStop Self vs. Rexford Industrial Realty | SmartStop Self vs. LXP Industrial Trust | SmartStop Self vs. Public Storage | SmartStop Self vs. Rexford Industrial 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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