Correlation Between National Storage and ULTRA CLEAN
Can any of the company-specific risk be diversified away by investing in both National Storage and ULTRA CLEAN 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 National Storage and ULTRA CLEAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Storage Affiliates and ULTRA CLEAN HLDGS, you can compare the effects of market volatilities on National Storage and ULTRA CLEAN 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 National Storage with a short position of ULTRA CLEAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Storage and ULTRA CLEAN.
Diversification Opportunities for National Storage and ULTRA CLEAN
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between National and ULTRA is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding National Storage Affiliates and ULTRA CLEAN HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ULTRA CLEAN HLDGS and National Storage 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 National Storage Affiliates are associated (or correlated) with ULTRA CLEAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ULTRA CLEAN HLDGS has no effect on the direction of National Storage i.e., National Storage and ULTRA CLEAN go up and down completely randomly.
Pair Corralation between National Storage and ULTRA CLEAN
Assuming the 90 days horizon National Storage Affiliates is expected to generate 0.31 times more return on investment than ULTRA CLEAN. However, National Storage Affiliates is 3.27 times less risky than ULTRA CLEAN. It trades about 0.0 of its potential returns per unit of risk. ULTRA CLEAN HLDGS is currently generating about -0.48 per unit of risk. If you would invest 3,621 in National Storage Affiliates on December 10, 2024 and sell it today you would lose (6.00) from holding National Storage Affiliates or give up 0.17% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
National Storage Affiliates vs. ULTRA CLEAN HLDGS
Performance |
Timeline |
National Storage Aff |
ULTRA CLEAN HLDGS |
National Storage and ULTRA CLEAN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with National Storage and ULTRA CLEAN
The main advantage of trading using opposite National Storage and ULTRA CLEAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Storage position performs unexpectedly, ULTRA CLEAN 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 ULTRA CLEAN will offset losses from the drop in ULTRA CLEAN's long position.National Storage vs. BII Railway Transportation | National Storage vs. American Airlines Group | National Storage vs. USWE SPORTS AB | National Storage vs. Gaztransport Technigaz SA |
ULTRA CLEAN vs. Apple Inc | ULTRA CLEAN vs. Apple Inc | ULTRA CLEAN vs. Apple Inc | ULTRA CLEAN vs. Apple Inc |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |