Correlation Between Public Storage and FIBRA Macquarie
Can any of the company-specific risk be diversified away by investing in both Public Storage and FIBRA Macquarie 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 FIBRA Macquarie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Storage and FIBRA Macquarie Mxico, you can compare the effects of market volatilities on Public Storage and FIBRA Macquarie 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 FIBRA Macquarie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Storage and FIBRA Macquarie.
Diversification Opportunities for Public Storage and FIBRA Macquarie
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Public and FIBRA is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Public Storage and FIBRA Macquarie Mxico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIBRA Macquarie Mxico 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 FIBRA Macquarie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIBRA Macquarie Mxico has no effect on the direction of Public Storage i.e., Public Storage and FIBRA Macquarie go up and down completely randomly.
Pair Corralation between Public Storage and FIBRA Macquarie
Considering the 90-day investment horizon Public Storage is expected to generate 0.53 times more return on investment than FIBRA Macquarie. However, Public Storage is 1.89 times less risky than FIBRA Macquarie. It trades about 0.14 of its potential returns per unit of risk. FIBRA Macquarie Mxico is currently generating about -0.04 per unit of risk. If you would invest 26,403 in Public Storage on September 3, 2024 and sell it today you would earn a total of 8,402 from holding Public Storage or generate 31.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 84.93% |
| Values | Daily Returns |
Public Storage vs. FIBRA Macquarie Mxico
Performance |
| Timeline |
| Public Storage |
| FIBRA Macquarie Mxico |
Public Storage and FIBRA Macquarie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Storage and FIBRA Macquarie
The main advantage of trading using opposite Public Storage and FIBRA Macquarie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Storage position performs unexpectedly, FIBRA Macquarie 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 FIBRA Macquarie will offset losses from the drop in FIBRA Macquarie's long position.| Public Storage vs. CubeSmart | Public Storage vs. National Storage Affiliates | Public Storage vs. Prologis | Public Storage vs. STAG Industrial |
| FIBRA Macquarie vs. Palo Alto Networks | FIBRA Macquarie vs. Singular Genomics Systems | FIBRA Macquarie vs. BlackRock | FIBRA Macquarie vs. Deckers Outdoor |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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