Correlation Between PUBLIC STORAGE and DATANG INTL

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both PUBLIC STORAGE and DATANG INTL 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 PUBLIC STORAGE and DATANG INTL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PUBLIC STORAGE PRFO and DATANG INTL POW, you can compare the effects of market volatilities on PUBLIC STORAGE and DATANG INTL 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 PUBLIC STORAGE with a short position of DATANG INTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PUBLIC STORAGE and DATANG INTL.

Diversification Opportunities for PUBLIC STORAGE and DATANG INTL

PUBLICDATANGDiversified AwayPUBLICDATANGDiversified Away100%
0.44
  Correlation Coefficient

Very weak diversification

The 3 months correlation between PUBLIC and DATANG is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding PUBLIC STORAGE PRFO and DATANG INTL POW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATANG INTL POW and PUBLIC 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 PUBLIC STORAGE PRFO are associated (or correlated) with DATANG INTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATANG INTL POW has no effect on the direction of PUBLIC STORAGE i.e., PUBLIC STORAGE and DATANG INTL go up and down completely randomly.

Pair Corralation between PUBLIC STORAGE and DATANG INTL

Assuming the 90 days trading horizon PUBLIC STORAGE PRFO is expected to under-perform the DATANG INTL. But the stock apears to be less risky and, when comparing its historical volatility, PUBLIC STORAGE PRFO is 3.48 times less risky than DATANG INTL. The stock trades about -0.02 of its potential returns per unit of risk. The DATANG INTL POW is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  15.00  in DATANG INTL POW on September 13, 2024 and sell it today you would earn a total of  3.00  from holding DATANG INTL POW or generate 20.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

PUBLIC STORAGE PRFO  vs.  DATANG INTL POW

 Performance 
JavaScript chart by amCharts 3.21.15OctNov 10203040
JavaScript chart by amCharts 3.21.15PUP0 BJI
       Timeline  
PUBLIC STORAGE PRFO 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days PUBLIC STORAGE PRFO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, PUBLIC STORAGE is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec16.216.416.616.81717.2
DATANG INTL POW 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in DATANG INTL POW are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, DATANG INTL unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec0.150.160.170.180.190.2

PUBLIC STORAGE and DATANG INTL Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.34-2.5-1.66-0.830.01410.851.692.543.39 0.050.100.150.200.250.300.35
JavaScript chart by amCharts 3.21.15PUP0 BJI
       Returns  

Pair Trading with PUBLIC STORAGE and DATANG INTL

The main advantage of trading using opposite PUBLIC STORAGE and DATANG INTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PUBLIC STORAGE position performs unexpectedly, DATANG INTL 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 DATANG INTL will offset losses from the drop in DATANG INTL's long position.
The idea behind PUBLIC STORAGE PRFO and DATANG INTL POW 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 Global Correlations module to find global opportunities by holding instruments from different markets.

Other Complementary Tools

USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios