Correlation Between ULTRA CLEAN and Public Storage
Can any of the company-specific risk be diversified away by investing in both ULTRA CLEAN 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 ULTRA CLEAN and Public Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ULTRA CLEAN HLDGS and Public Storage, you can compare the effects of market volatilities on ULTRA CLEAN 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 ULTRA CLEAN with a short position of Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of ULTRA CLEAN and Public Storage.
Diversification Opportunities for ULTRA CLEAN and Public Storage
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ULTRA and Public is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding ULTRA CLEAN HLDGS and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage and ULTRA CLEAN 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 ULTRA CLEAN HLDGS 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 ULTRA CLEAN i.e., ULTRA CLEAN and Public Storage go up and down completely randomly.
Pair Corralation between ULTRA CLEAN and Public Storage
Assuming the 90 days trading horizon ULTRA CLEAN HLDGS is expected to generate 1.99 times more return on investment than Public Storage. However, ULTRA CLEAN is 1.99 times more volatile than Public Storage. It trades about 0.05 of its potential returns per unit of risk. Public Storage is currently generating about 0.06 per unit of risk. If you would invest 2,500 in ULTRA CLEAN HLDGS on August 31, 2024 and sell it today you would earn a total of 1,060 from holding ULTRA CLEAN HLDGS or generate 42.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ULTRA CLEAN HLDGS vs. Public Storage
Performance |
| Timeline |
| ULTRA CLEAN HLDGS |
| Public Storage |
ULTRA CLEAN and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ULTRA CLEAN and Public Storage
The main advantage of trading using opposite ULTRA CLEAN and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ULTRA CLEAN 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.| ULTRA CLEAN vs. SIVERS SEMICONDUCTORS AB | ULTRA CLEAN vs. Darden Restaurants | ULTRA CLEAN vs. Reliance Steel Aluminum | ULTRA CLEAN vs. Q2M Managementberatung AG |
| Public Storage vs. Games Workshop Group | Public Storage vs. DALATA HOTEL | Public Storage vs. ANGLER GAMING PLC | Public Storage vs. Penn National Gaming |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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