Correlation Between Ascendas Real and Public Storage
Can any of the company-specific risk be diversified away by investing in both Ascendas Real and Public Storage 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 Ascendas Real and Public Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascendas Real Estate and Public Storage, you can compare the effects of market volatilities on Ascendas Real and Public Storage 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 Ascendas Real with a short position of Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendas Real and Public Storage.
Diversification Opportunities for Ascendas Real and Public Storage
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ascendas and Public is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ascendas Real Estate and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage and Ascendas Real 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 Ascendas Real Estate are associated (or correlated) with Public Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Storage has no effect on the direction of Ascendas Real i.e., Ascendas Real and Public Storage go up and down completely randomly.
Pair Corralation between Ascendas Real and Public Storage
Assuming the 90 days horizon Ascendas Real is expected to generate 2.01 times less return on investment than Public Storage. In addition to that, Ascendas Real is 1.31 times more volatile than Public Storage. It trades about 0.02 of its total potential returns per unit of risk. Public Storage is currently generating about 0.06 per unit of volatility. If you would invest 25,236 in Public Storage on August 31, 2024 and sell it today you would earn a total of 8,084 from holding Public Storage or generate 32.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ascendas Real Estate vs. Public Storage
Performance |
Timeline |
Ascendas Real Estate |
Public Storage |
Ascendas Real and Public Storage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ascendas Real and Public Storage
The main advantage of trading using opposite Ascendas Real and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendas Real position performs unexpectedly, Public Storage 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 Public Storage will offset losses from the drop in Public Storage's long position.Ascendas Real vs. PLAYSTUDIOS A DL 0001 | Ascendas Real vs. LG Display Co | Ascendas Real vs. ePlay Digital | Ascendas Real vs. Zijin Mining Group |
Public Storage vs. Games Workshop Group | Public Storage vs. DALATA HOTEL | Public Storage vs. ANGLER GAMING PLC | Public Storage vs. Penn National Gaming |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |