Correlation Between Global Self and Americold Realty
Can any of the company-specific risk be diversified away by investing in both Global Self and Americold Realty 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 Global Self and Americold Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Self Storage and Americold Realty Trust, you can compare the effects of market volatilities on Global Self and Americold Realty 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 Global Self with a short position of Americold Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Self and Americold Realty.
Diversification Opportunities for Global Self and Americold Realty
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and Americold is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Global Self Storage and Americold Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Americold Realty Trust and Global Self 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 Global Self Storage are associated (or correlated) with Americold Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Americold Realty Trust has no effect on the direction of Global Self i.e., Global Self and Americold Realty go up and down completely randomly.
Pair Corralation between Global Self and Americold Realty
Given the investment horizon of 90 days Global Self Storage is expected to generate 0.5 times more return on investment than Americold Realty. However, Global Self Storage is 2.0 times less risky than Americold Realty. It trades about 0.12 of its potential returns per unit of risk. Americold Realty Trust is currently generating about -0.15 per unit of risk. If you would invest 501.00 in Global Self Storage on August 28, 2024 and sell it today you would earn a total of 15.00 from holding Global Self Storage or generate 2.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Global Self Storage vs. Americold Realty Trust
Performance |
Timeline |
Global Self Storage |
Americold Realty Trust |
Global Self and Americold Realty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global Self and Americold Realty
The main advantage of trading using opposite Global Self and Americold Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Self position performs unexpectedly, Americold Realty 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 Americold Realty will offset losses from the drop in Americold Realty's long position.Global Self vs. LXP Industrial Trust | Global Self vs. First Industrial Realty | Global Self vs. Plymouth Industrial REIT | Global Self vs. Terreno Realty |
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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.
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