Correlation Between Public Storage and Peak Resources
Can any of the company-specific risk be diversified away by investing in both Public Storage and Peak Resources 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 Peak Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Storage and Peak Resources Limited, you can compare the effects of market volatilities on Public Storage and Peak Resources 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 Peak Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Storage and Peak Resources.
Diversification Opportunities for Public Storage and Peak Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Public and Peak is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Public Storage and Peak Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peak Resources 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 Peak Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peak Resources has no effect on the direction of Public Storage i.e., Public Storage and Peak Resources go up and down completely randomly.
Pair Corralation between Public Storage and Peak Resources
Assuming the 90 days horizon Public Storage is expected to generate 0.17 times more return on investment than Peak Resources. However, Public Storage is 5.73 times less risky than Peak Resources. It trades about 0.09 of its potential returns per unit of risk. Peak Resources Limited is currently generating about -0.01 per unit of risk. If you would invest 22,358 in Public Storage on September 14, 2024 and sell it today you would earn a total of 8,132 from holding Public Storage or generate 36.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Public Storage vs. Peak Resources Limited
Performance |
| Timeline |
| Public Storage |
| Peak Resources |
Public Storage and Peak Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Storage and Peak Resources
The main advantage of trading using opposite Public Storage and Peak Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Storage position performs unexpectedly, Peak Resources 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 Peak Resources will offset losses from the drop in Peak Resources' long position.| Public Storage vs. Prologis | Public Storage vs. Yara International ASA | Public Storage vs. Ascendas Real Estate | Public Storage vs. STAG Industrial |
| Peak Resources vs. Siamgas And Petrochemicals | Peak Resources vs. Public Storage | Peak Resources vs. Casio Computer CoLtd | Peak Resources vs. Datang International Power |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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