Correlation Between PUBLIC STORAGE and Lyxor 1

Can any of the company-specific risk be diversified away by investing in both PUBLIC STORAGE and Lyxor 1 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 Lyxor 1 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 Lyxor 1 , you can compare the effects of market volatilities on PUBLIC STORAGE and Lyxor 1 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 Lyxor 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of PUBLIC STORAGE and Lyxor 1.

Diversification Opportunities for PUBLIC STORAGE and Lyxor 1

0.44

Correlation Coefficient

PUBLIC STORAGE  Lyxor 1

Very weak diversification

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

Pair Corralation between PUBLIC STORAGE and Lyxor 1

Assuming the 90 days trading horizon PUBLIC STORAGE PRFO is expected to generate 1.16 times more return on investment than Lyxor 1. However, PUBLIC STORAGE is 1.16 times more volatile than Lyxor 1 . It trades about 0.07 of its potential returns per unit of risk. Lyxor 1 is currently generating about 0.01 per unit of risk. If you would invest  1,567  in PUBLIC STORAGE PRFO on August 31, 2024 and sell it today you would earn a total of  73.00  from holding PUBLIC STORAGE PRFO or generate 4.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

PUBLIC STORAGE PRFO  vs.  Lyxor 1

PUBLIC STORAGE PRFO

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in PUBLIC STORAGE PRFO are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. 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.

Lyxor 1

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lyxor 1 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Lyxor 1 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with PUBLIC STORAGE and Lyxor 1

The main advantage of trading using opposite PUBLIC STORAGE and Lyxor 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PUBLIC STORAGE position performs unexpectedly, Lyxor 1 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 Lyxor 1 will offset losses from the drop in Lyxor 1's long position.

The idea behind PUBLIC STORAGE PRFO and Lyxor 1 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.