Correlation Between Public Storage and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Public Storage and Dow Jones 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 Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Storage and Dow Jones Industrial, you can compare the effects of market volatilities on Public Storage and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Storage and Dow Jones.
Diversification Opportunities for Public Storage and Dow Jones
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Public and Dow is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Public Storage and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Public Storage i.e., Public Storage and Dow Jones go up and down completely randomly.
Pair Corralation between Public Storage and Dow Jones
Considering the 90-day investment horizon Public Storage is expected to generate 2.0 times more return on investment than Dow Jones. However, Public Storage is 2.0 times more volatile than Dow Jones Industrial. It trades about 0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.07 per unit of risk. If you would invest 26,745 in Public Storage on August 24, 2024 and sell it today you would earn a total of 7,013 from holding Public Storage or generate 26.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Public Storage vs. Dow Jones Industrial
Performance |
| Timeline |
Public Storage and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Public Storage
Pair trading matchups for Public Storage
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Public Storage and Dow Jones
The main advantage of trading using opposite Public Storage and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Storage position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Public Storage vs. CubeSmart | Public Storage vs. National Storage Affiliates | Public Storage vs. Prologis | Public Storage vs. STAG Industrial |
| Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Titan Machinery | Dow Jones vs. Simon Property Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Commodity Directory Find actively traded commodities issued by global exchanges |