Correlation Between Public Storage and CENTURIA OFFICE
Can any of the company-specific risk be diversified away by investing in both Public Storage and CENTURIA OFFICE 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 CENTURIA OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Storage and CENTURIA OFFICE REIT, you can compare the effects of market volatilities on Public Storage and CENTURIA OFFICE 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 CENTURIA OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Storage and CENTURIA OFFICE.
Diversification Opportunities for Public Storage and CENTURIA OFFICE
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Public and CENTURIA is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Public Storage and CENTURIA OFFICE REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTURIA OFFICE REIT 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 CENTURIA OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTURIA OFFICE REIT has no effect on the direction of Public Storage i.e., Public Storage and CENTURIA OFFICE go up and down completely randomly.
Pair Corralation between Public Storage and CENTURIA OFFICE
Assuming the 90 days horizon Public Storage is expected to generate 0.87 times more return on investment than CENTURIA OFFICE. However, Public Storage is 1.15 times less risky than CENTURIA OFFICE. It trades about 0.02 of its potential returns per unit of risk. CENTURIA OFFICE REIT is currently generating about 0.0 per unit of risk. If you would invest 25,174 in Public Storage on November 19, 2024 and sell it today you would earn a total of 3,316 from holding Public Storage or generate 13.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Public Storage vs. CENTURIA OFFICE REIT
Performance |
| Timeline |
| Public Storage |
| CENTURIA OFFICE REIT |
Public Storage and CENTURIA OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Storage and CENTURIA OFFICE
The main advantage of trading using opposite Public Storage and CENTURIA OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Storage position performs unexpectedly, CENTURIA OFFICE 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 CENTURIA OFFICE will offset losses from the drop in CENTURIA OFFICE's long position.| Public Storage vs. Zijin Mining Group | Public Storage vs. United Microelectronics Corp | Public Storage vs. ARDAGH METAL PACDL 0001 | Public Storage vs. Benchmark Electronics |
| CENTURIA OFFICE vs. Xenia Hotels Resorts | CENTURIA OFFICE vs. Apollo Investment Corp | CENTURIA OFFICE vs. PennantPark Investment | CENTURIA OFFICE vs. REGAL ASIAN INVESTMENTS |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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