Correlation Between Stag Industrial and ON THE
Can any of the company-specific risk be diversified away by investing in both Stag Industrial and ON THE 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 ON THE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stag Industrial and ON THE BEACH, you can compare the effects of market volatilities on Stag Industrial and ON THE 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 ON THE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stag Industrial and ON THE.
Diversification Opportunities for Stag Industrial and ON THE
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Stag and 9BP is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Stag Industrial and ON THE BEACH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ON THE BEACH 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 ON THE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ON THE BEACH has no effect on the direction of Stag Industrial i.e., Stag Industrial and ON THE go up and down completely randomly.
Pair Corralation between Stag Industrial and ON THE
Assuming the 90 days trading horizon Stag Industrial is expected to generate 1.26 times less return on investment than ON THE. But when comparing it to its historical volatility, Stag Industrial is 2.5 times less risky than ON THE. It trades about 0.12 of its potential returns per unit of risk. ON THE BEACH is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 296.00 in ON THE BEACH on November 3, 2024 and sell it today you would earn a total of 8.00 from holding ON THE BEACH or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stag Industrial vs. ON THE BEACH
Performance |
| Timeline |
| Stag Industrial |
| ON THE BEACH |
Stag Industrial and ON THE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stag Industrial and ON THE
The main advantage of trading using opposite Stag Industrial and ON THE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stag Industrial position performs unexpectedly, ON THE 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 ON THE will offset losses from the drop in ON THE's long position.| Stag Industrial vs. SIVERS SEMICONDUCTORS AB | Stag Industrial vs. NorAm Drilling AS | Stag Industrial vs. Volkswagen AG | Stag Industrial vs. Darden Restaurants |
| ON THE vs. CARSALESCOM | ON THE vs. Fevertree Drinks PLC | ON THE vs. INTER CARS SA | ON THE vs. BOSTON BEER A |
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.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |