Correlation Between Public Storage and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Public Storage and GRIFFIN MINING 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 GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Storage and GRIFFIN MINING LTD, you can compare the effects of market volatilities on Public Storage and GRIFFIN MINING 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 GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Storage and GRIFFIN MINING.
Diversification Opportunities for Public Storage and GRIFFIN MINING
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Public and GRIFFIN is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Public Storage and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD 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 GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of Public Storage i.e., Public Storage and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Public Storage and GRIFFIN MINING
Assuming the 90 days horizon Public Storage is expected to generate 0.64 times more return on investment than GRIFFIN MINING. However, Public Storage is 1.57 times less risky than GRIFFIN MINING. It trades about 0.16 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.0 per unit of risk. If you would invest 24,289 in Public Storage on September 3, 2024 and sell it today you would earn a total of 9,031 from holding Public Storage or generate 37.18% 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. GRIFFIN MINING LTD
Performance |
| Timeline |
| Public Storage |
| GRIFFIN MINING LTD |
Public Storage and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Storage and GRIFFIN MINING
The main advantage of trading using opposite Public Storage and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Storage position performs unexpectedly, GRIFFIN MINING 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 GRIFFIN MINING will offset losses from the drop in GRIFFIN MINING's long position.| Public Storage vs. SBA Communications Corp | Public Storage vs. INTERSHOP Communications Aktiengesellschaft | Public Storage vs. Cass Information Systems | Public Storage vs. Citic Telecom International |
| GRIFFIN MINING vs. Cardinal Health | GRIFFIN MINING vs. ALERION CLEANPOWER | GRIFFIN MINING vs. Clean Energy Fuels | GRIFFIN MINING vs. FEMALE HEALTH |
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 CEOs Directory module to screen CEOs from public companies around the world.
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