Correlation Between STAG Industrial and Extra Space
Can any of the company-specific risk be diversified away by investing in both STAG Industrial and Extra Space 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 STAG Industrial and Extra Space into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STAG Industrial and Extra Space Storage, you can compare the effects of market volatilities on STAG Industrial and Extra Space 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 STAG Industrial with a short position of Extra Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of STAG Industrial and Extra Space.
Diversification Opportunities for STAG Industrial and Extra Space
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between STAG and Extra is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding STAG Industrial and Extra Space Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extra Space Storage and STAG Industrial 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 STAG Industrial are associated (or correlated) with Extra Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extra Space Storage has no effect on the direction of STAG Industrial i.e., STAG Industrial and Extra Space go up and down completely randomly.
Pair Corralation between STAG Industrial and Extra Space
Given the investment horizon of 90 days STAG Industrial is expected to generate 0.85 times more return on investment than Extra Space. However, STAG Industrial is 1.18 times less risky than Extra Space. It trades about 0.14 of its potential returns per unit of risk. Extra Space Storage is currently generating about 0.12 per unit of risk. If you would invest 3,429 in STAG Industrial on November 25, 2024 and sell it today you would earn a total of 91.00 from holding STAG Industrial or generate 2.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
STAG Industrial vs. Extra Space Storage
Performance |
Timeline |
STAG Industrial |
Extra Space Storage |
STAG Industrial and Extra Space Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with STAG Industrial and Extra Space
The main advantage of trading using opposite STAG Industrial and Extra Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STAG Industrial position performs unexpectedly, Extra Space 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 Extra Space will offset losses from the drop in Extra Space's long position.STAG Industrial vs. Public Storage | ||
STAG Industrial vs. Extra Space Storage | ||
STAG Industrial vs. Rexford Industrial Realty | ||
STAG Industrial vs. Innovative Industrial Properties |
Extra Space vs. CubeSmart | ||
Extra Space vs. National Storage Affiliates | ||
Extra Space vs. Public Storage | ||
Extra Space vs. EastGroup Properties |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |