Correlation Between Public Storage and CDN IMPERIAL
Can any of the company-specific risk be diversified away by investing in both Public Storage and CDN IMPERIAL 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 CDN IMPERIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Storage and CDN IMPERIAL BANK, you can compare the effects of market volatilities on Public Storage and CDN IMPERIAL 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 CDN IMPERIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Storage and CDN IMPERIAL.
Diversification Opportunities for Public Storage and CDN IMPERIAL
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Public and CDN is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Public Storage and CDN IMPERIAL BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDN IMPERIAL BANK 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 CDN IMPERIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDN IMPERIAL BANK has no effect on the direction of Public Storage i.e., Public Storage and CDN IMPERIAL go up and down completely randomly.
Pair Corralation between Public Storage and CDN IMPERIAL
Assuming the 90 days horizon Public Storage is expected to generate 1.48 times less return on investment than CDN IMPERIAL. In addition to that, Public Storage is 1.25 times more volatile than CDN IMPERIAL BANK. It trades about 0.1 of its total potential returns per unit of risk. CDN IMPERIAL BANK is currently generating about 0.19 per unit of volatility. If you would invest 3,628 in CDN IMPERIAL BANK on September 2, 2024 and sell it today you would earn a total of 2,491 from holding CDN IMPERIAL BANK or generate 68.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Public Storage vs. CDN IMPERIAL BANK
Performance |
| Timeline |
| Public Storage |
| CDN IMPERIAL BANK |
Public Storage and CDN IMPERIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Storage and CDN IMPERIAL
The main advantage of trading using opposite Public Storage and CDN IMPERIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Storage position performs unexpectedly, CDN IMPERIAL 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 CDN IMPERIAL will offset losses from the drop in CDN IMPERIAL's long position.| Public Storage vs. GALENA MINING LTD | Public Storage vs. Monster Beverage Corp | Public Storage vs. Fevertree Drinks PLC | Public Storage vs. MAGNUM MINING EXP |
| CDN IMPERIAL vs. SIVERS SEMICONDUCTORS AB | CDN IMPERIAL vs. Darden Restaurants | CDN IMPERIAL vs. Reliance Steel Aluminum | CDN IMPERIAL vs. Q2M Managementberatung AG |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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