Correlation Between PUBLIC STORAGE and PT Global
Can any of the company-specific risk be diversified away by investing in both PUBLIC STORAGE and PT Global 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 PT Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PUBLIC STORAGE PRFO and PT Global Mediacom, you can compare the effects of market volatilities on PUBLIC STORAGE and PT Global 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 PT Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of PUBLIC STORAGE and PT Global.
Diversification Opportunities for PUBLIC STORAGE and PT Global
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PUBLIC and 06L is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding PUBLIC STORAGE PRFO and PT Global Mediacom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Global Mediacom 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 PRFO are associated (or correlated) with PT Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Global Mediacom has no effect on the direction of PUBLIC STORAGE i.e., PUBLIC STORAGE and PT Global go up and down completely randomly.
Pair Corralation between PUBLIC STORAGE and PT Global
Assuming the 90 days trading horizon PUBLIC STORAGE PRFO is expected to generate 0.54 times more return on investment than PT Global. However, PUBLIC STORAGE PRFO is 1.84 times less risky than PT Global. It trades about -0.01 of its potential returns per unit of risk. PT Global Mediacom is currently generating about -0.06 per unit of risk. If you would invest 1,660 in PUBLIC STORAGE PRFO on August 29, 2024 and sell it today you would lose (10.00) from holding PUBLIC STORAGE PRFO or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PUBLIC STORAGE PRFO vs. PT Global Mediacom
Performance |
| Timeline |
| PUBLIC STORAGE PRFO |
| PT Global Mediacom |
PUBLIC STORAGE and PT Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PUBLIC STORAGE and PT Global
The main advantage of trading using opposite PUBLIC STORAGE and PT Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PUBLIC STORAGE position performs unexpectedly, PT Global 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 PT Global will offset losses from the drop in PT Global's long position.| PUBLIC STORAGE vs. Lyxor 1 | PUBLIC STORAGE vs. Xtrackers LevDAX | PUBLIC STORAGE vs. Xtrackers ShortDAX | PUBLIC STORAGE vs. Superior Plus Corp |
| PT Global vs. Highlight Communications AG | PT Global vs. INTERSHOP Communications Aktiengesellschaft | PT Global vs. RETAIL FOOD GROUP | PT Global vs. MTI WIRELESS EDGE |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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