Correlation Between Elbit Imaging and Public Storage

Can any of the company-specific risk be diversified away by investing in both Elbit Imaging 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 Elbit Imaging and Public Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Elbit Imaging and Public Storage, you can compare the effects of market volatilities on Elbit Imaging 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 Elbit Imaging with a short position of Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elbit Imaging and Public Storage.

Diversification Opportunities for Elbit Imaging and Public Storage

-0.37

Correlation Coefficient

Elbit Imaging  Public Storage

Very good diversification

The 3 months correlation between Elbit and Public is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Elbit Imaging and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage and Elbit Imaging 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 Elbit Imaging 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 Elbit Imaging i.e., Elbit Imaging and Public Storage go up and down completely randomly.

Pair Corralation between Elbit Imaging and Public Storage

If you would invest  150.00  in Elbit Imaging on September 4, 2024 and sell it today you would earn a total of  0.00  from holding Elbit Imaging or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Elbit Imaging  vs.  Public Storage

Elbit Imaging

Risk-Adjusted Performance

0 of 100

Very Weak

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

Public Storage

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Public Storage has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Public Storage is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Elbit Imaging and Public Storage

The main advantage of trading using opposite Elbit Imaging and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elbit Imaging 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.

The idea behind Elbit Imaging and Public 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.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.