Correlation Between Terreno Realty and Public Storage
Can any of the company-specific risk be diversified away by investing in both Terreno Realty 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 Terreno Realty and Public Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Terreno Realty and Public Storage, you can compare the effects of market volatilities on Terreno Realty 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 Terreno Realty with a short position of Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Terreno Realty and Public Storage.
Diversification Opportunities for Terreno Realty and Public Storage
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Terreno and Public is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Terreno Realty and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage and Terreno 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 Terreno Realty 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 Terreno Realty i.e., Terreno Realty and Public Storage go up and down completely randomly.
Pair Corralation between Terreno Realty and Public Storage
Given the investment horizon of 90 days Terreno Realty is expected to generate 2.01 times more return on investment than Public Storage. However, Terreno Realty is 2.01 times more volatile than Public Storage. It trades about 0.01 of its potential returns per unit of risk. Public Storage is currently generating about -0.11 per unit of risk. If you would invest 6,117 in Terreno Realty on August 30, 2024 and sell it today you would earn a total of 4.00 from holding Terreno Realty or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Terreno Realty vs. Public Storage
Performance |
| Timeline |
| Terreno Realty |
| Public Storage |
Terreno Realty and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Terreno Realty and Public Storage
The main advantage of trading using opposite Terreno Realty and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Terreno Realty 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.| Terreno Realty vs. Boston Properties | Terreno Realty vs. Douglas Emmett | Terreno Realty vs. Kilroy Realty Corp | Terreno Realty vs. Alexandria Real Estate |
| Public Storage vs. Public Storage | Public Storage vs. Public Storage | Public Storage vs. Public Storage | Public Storage vs. Public 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |