Correlation Between Tetragon Financial and Public Storage
Can any of the company-specific risk be diversified away by investing in both Tetragon Financial 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 Tetragon Financial and Public Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tetragon Financial Group and Public Storage, you can compare the effects of market volatilities on Tetragon Financial 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 Tetragon Financial with a short position of Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tetragon Financial and Public Storage.
Diversification Opportunities for Tetragon Financial and Public Storage
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tetragon and Public is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Tetragon Financial Group and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage and Tetragon Financial 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 Tetragon Financial Group 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 Tetragon Financial i.e., Tetragon Financial and Public Storage go up and down completely randomly.
Pair Corralation between Tetragon Financial and Public Storage
Assuming the 90 days trading horizon Tetragon Financial Group is expected to generate 0.57 times more return on investment than Public Storage. However, Tetragon Financial Group is 1.76 times less risky than Public Storage. It trades about 0.13 of its potential returns per unit of risk. Public Storage is currently generating about 0.02 per unit of risk. If you would invest 890.00 in Tetragon Financial Group on October 20, 2024 and sell it today you would earn a total of 725.00 from holding Tetragon Financial Group or generate 81.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.0% |
| Values | Daily Returns |
Tetragon Financial Group vs. Public Storage
Performance |
| Timeline |
| Tetragon Financial |
| Public Storage |
Tetragon Financial and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tetragon Financial and Public Storage
The main advantage of trading using opposite Tetragon Financial and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tetragon Financial 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.| Tetragon Financial vs. Tungsten West PLC | Tetragon Financial vs. Argo Group Limited | Tetragon Financial vs. Hardide PLC | Tetragon Financial vs. Versarien PLC |
| Public Storage vs. Rheinmetall AG | Public Storage vs. AMG Advanced Metallurgical | Public Storage vs. Coeur Mining | Public Storage vs. Panther Metals PLC |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| CEOs Directory Screen CEOs from public companies around the world |