Correlation Between Public Storage and G III
Can any of the company-specific risk be diversified away by investing in both Public Storage and G III 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 G III into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Storage and G III Apparel Group, you can compare the effects of market volatilities on Public Storage and G III 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 G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Storage and G III.
Diversification Opportunities for Public Storage and G III
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Public and GI4 is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Public Storage and G III Apparel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III Apparel 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 G III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III Apparel has no effect on the direction of Public Storage i.e., Public Storage and G III go up and down completely randomly.
Pair Corralation between Public Storage and G III
Assuming the 90 days horizon Public Storage is expected to generate 3.41 times less return on investment than G III. But when comparing it to its historical volatility, Public Storage is 2.02 times less risky than G III. It trades about 0.04 of its potential returns per unit of risk. G III Apparel Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,320 in G III Apparel Group on August 30, 2024 and sell it today you would earn a total of 1,480 from holding G III Apparel Group or generate 112.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Public Storage vs. G III Apparel Group
Performance |
| Timeline |
| Public Storage |
| G III Apparel |
Public Storage and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Storage and G III
The main advantage of trading using opposite Public Storage and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Storage position performs unexpectedly, G III 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 G III will offset losses from the drop in G III's long position.| Public Storage vs. EastGroup Properties | Public Storage vs. Superior Plus Corp | Public Storage vs. SIVERS SEMICONDUCTORS AB | Public Storage vs. Talanx 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 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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