Correlation Between Xeros Technology and Public Storage
Can any of the company-specific risk be diversified away by investing in both Xeros Technology 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 Xeros Technology and Public Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xeros Technology Group and Public Storage, you can compare the effects of market volatilities on Xeros Technology 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 Xeros Technology with a short position of Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xeros Technology and Public Storage.
Diversification Opportunities for Xeros Technology and Public Storage
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xeros and Public is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Xeros Technology Group and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage and Xeros Technology 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 Xeros Technology 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 Xeros Technology i.e., Xeros Technology and Public Storage go up and down completely randomly.
Pair Corralation between Xeros Technology and Public Storage
Assuming the 90 days trading horizon Xeros Technology Group is expected to generate 7.0 times more return on investment than Public Storage. However, Xeros Technology is 7.0 times more volatile than Public Storage. It trades about 0.27 of its potential returns per unit of risk. Public Storage is currently generating about -0.03 per unit of risk. If you would invest 38.00 in Xeros Technology Group on October 29, 2024 and sell it today you would earn a total of 15.00 from holding Xeros Technology Group or generate 39.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xeros Technology Group vs. Public Storage
Performance |
| Timeline |
| Xeros Technology |
| Public Storage |
Xeros Technology and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xeros Technology and Public Storage
The main advantage of trading using opposite Xeros Technology and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xeros Technology 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.| Xeros Technology vs. Monks Investment Trust | Xeros Technology vs. Polar Capital Technology | Xeros Technology vs. Herald Investment Trust | Xeros Technology vs. Vietnam Enterprise Investments |
| Public Storage vs. Eastman Chemical Co | Public Storage vs. Fevertree Drinks Plc | Public Storage vs. International Biotechnology Trust | Public Storage vs. Monster Beverage Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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