Correlation Between PUBLIC STORAGE and XLMedia PLC
Can any of the company-specific risk be diversified away by investing in both PUBLIC STORAGE and XLMedia PLC 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 XLMedia PLC 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 XLMedia PLC, you can compare the effects of market volatilities on PUBLIC STORAGE and XLMedia PLC 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 XLMedia PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of PUBLIC STORAGE and XLMedia PLC.
Diversification Opportunities for PUBLIC STORAGE and XLMedia PLC
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between PUBLIC and XLMedia is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding PUBLIC STORAGE PRFO and XLMedia PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XLMedia PLC 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 XLMedia PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XLMedia PLC has no effect on the direction of PUBLIC STORAGE i.e., PUBLIC STORAGE and XLMedia PLC go up and down completely randomly.
Pair Corralation between PUBLIC STORAGE and XLMedia PLC
Assuming the 90 days trading horizon PUBLIC STORAGE is expected to generate 2.82 times less return on investment than XLMedia PLC. But when comparing it to its historical volatility, PUBLIC STORAGE PRFO is 6.63 times less risky than XLMedia PLC. It trades about 0.03 of its potential returns per unit of risk. XLMedia PLC is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 24.00 in XLMedia PLC on September 1, 2024 and sell it today you would lose (10.00) from holding XLMedia PLC or give up 41.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PUBLIC STORAGE PRFO vs. XLMedia PLC
Performance |
| Timeline |
| PUBLIC STORAGE PRFO |
| XLMedia PLC |
PUBLIC STORAGE and XLMedia PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PUBLIC STORAGE and XLMedia PLC
The main advantage of trading using opposite PUBLIC STORAGE and XLMedia PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PUBLIC STORAGE position performs unexpectedly, XLMedia PLC 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 XLMedia PLC will offset losses from the drop in XLMedia PLC's long position.| PUBLIC STORAGE vs. Lyxor 1 | PUBLIC STORAGE vs. Xtrackers ShortDAX | PUBLIC STORAGE vs. Xtrackers LevDAX | PUBLIC STORAGE vs. Superior Plus Corp |
| XLMedia PLC vs. FLOW TRADERS LTD | XLMedia PLC vs. Auto Trader Group | XLMedia PLC vs. Carsales | XLMedia PLC vs. CarsalesCom |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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