Correlation Between Public Storage and DATAGROUP
Can any of the company-specific risk be diversified away by investing in both Public Storage and DATAGROUP 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 DATAGROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Storage and DATAGROUP SE, you can compare the effects of market volatilities on Public Storage and DATAGROUP 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 DATAGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Storage and DATAGROUP.
Diversification Opportunities for Public Storage and DATAGROUP
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Public and DATAGROUP is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Public Storage and DATAGROUP SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATAGROUP SE 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 DATAGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATAGROUP SE has no effect on the direction of Public Storage i.e., Public Storage and DATAGROUP go up and down completely randomly.
Pair Corralation between Public Storage and DATAGROUP
Assuming the 90 days horizon Public Storage is expected to generate 1.41 times less return on investment than DATAGROUP. But when comparing it to its historical volatility, Public Storage is 1.97 times less risky than DATAGROUP. It trades about 0.14 of its potential returns per unit of risk. DATAGROUP SE is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4,270 in DATAGROUP SE on August 29, 2024 and sell it today you would earn a total of 280.00 from holding DATAGROUP SE or generate 6.56% 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. DATAGROUP SE
Performance |
| Timeline |
| Public Storage |
| DATAGROUP SE |
Public Storage and DATAGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Storage and DATAGROUP
The main advantage of trading using opposite Public Storage and DATAGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Storage position performs unexpectedly, DATAGROUP 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 DATAGROUP will offset losses from the drop in DATAGROUP's long position.| Public Storage vs. GAMING FAC SA | Public Storage vs. PARKEN Sport Entertainment | Public Storage vs. Media and Games | Public Storage vs. GAMESTOP |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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