Correlation Between Terreno Realty and Global Self

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Terreno Realty and Global Self 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 Global Self into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Terreno Realty and Global Self Storage, you can compare the effects of market volatilities on Terreno Realty and Global Self 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 Global Self. Check out your portfolio center. Please also check ongoing floating volatility patterns of Terreno Realty and Global Self.

Diversification Opportunities for Terreno Realty and Global Self

0.1
  Correlation Coefficient

Average diversification

The 3 months correlation between Terreno and Global is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Terreno Realty and Global Self Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Self 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 Global Self. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Self Storage has no effect on the direction of Terreno Realty i.e., Terreno Realty and Global Self go up and down completely randomly.

Pair Corralation between Terreno Realty and Global Self

Given the investment horizon of 90 days Terreno Realty is expected to under-perform the Global Self. But the stock apears to be less risky and, when comparing its historical volatility, Terreno Realty is 1.06 times less risky than Global Self. The stock trades about -0.05 of its potential returns per unit of risk. The Global Self Storage is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  501.00  in Global Self Storage on August 28, 2024 and sell it today you would earn a total of  15.00  from holding Global Self Storage or generate 2.99% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Terreno Realty  vs.  Global Self Storage

 Performance 
       Timeline  
Terreno Realty 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Terreno Realty has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.
Global Self Storage 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Global Self Storage has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Global Self is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Terreno Realty and Global Self Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Terreno Realty and Global Self

The main advantage of trading using opposite Terreno Realty and Global Self positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Terreno Realty position performs unexpectedly, Global Self 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 Global Self will offset losses from the drop in Global Self's long position.
The idea behind Terreno Realty and Global Self Storage pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

Other Complementary Tools

Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world