Correlation Between Spirit Realty and CubeSmart
Can any of the company-specific risk be diversified away by investing in both Spirit Realty and CubeSmart 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 Spirit Realty and CubeSmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spirit Realty Capital and CubeSmart, you can compare the effects of market volatilities on Spirit Realty and CubeSmart 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 Spirit Realty with a short position of CubeSmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spirit Realty and CubeSmart.
Diversification Opportunities for Spirit Realty and CubeSmart
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Spirit and CubeSmart is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Spirit Realty Capital and CubeSmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CubeSmart and Spirit Realty 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 Spirit Realty Capital are associated (or correlated) with CubeSmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CubeSmart has no effect on the direction of Spirit Realty i.e., Spirit Realty and CubeSmart go up and down completely randomly.
Pair Corralation between Spirit Realty and CubeSmart
If you would invest 4,188 in Spirit Realty Capital on November 1, 2024 and sell it today you would earn a total of 0.00 from holding Spirit Realty Capital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Spirit Realty Capital vs. CubeSmart
Performance |
| Timeline |
| Spirit Realty Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CubeSmart |
Spirit Realty and CubeSmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spirit Realty and CubeSmart
The main advantage of trading using opposite Spirit Realty and CubeSmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spirit Realty position performs unexpectedly, CubeSmart 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 CubeSmart will offset losses from the drop in CubeSmart's long position.| Spirit Realty vs. Broadstone Net Lease | Spirit Realty vs. Armada Hflr Pr | Spirit Realty vs. Brightspire Capital | Spirit Realty vs. Safehold |
| CubeSmart vs. Public Storage | CubeSmart vs. National Storage Affiliates | CubeSmart vs. Prologis | CubeSmart vs. Extra Space Storage |
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 CEOs Directory module to screen CEOs from public companies around the world.
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