Correlation Between Centuria Industrial and National Storage
Can any of the company-specific risk be diversified away by investing in both Centuria Industrial and National 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 Centuria Industrial and National Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centuria Industrial REIT and National Storage REIT, you can compare the effects of market volatilities on Centuria Industrial and National 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 Centuria Industrial with a short position of National Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centuria Industrial and National Storage.
Diversification Opportunities for Centuria Industrial and National Storage
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Centuria and National is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Centuria Industrial REIT and National Storage REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Storage REIT and Centuria Industrial 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 Centuria Industrial REIT are associated (or correlated) with National Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Storage REIT has no effect on the direction of Centuria Industrial i.e., Centuria Industrial and National Storage go up and down completely randomly.
Pair Corralation between Centuria Industrial and National Storage
Assuming the 90 days trading horizon Centuria Industrial REIT is expected to generate 0.95 times more return on investment than National Storage. However, Centuria Industrial REIT is 1.05 times less risky than National Storage. It trades about 0.16 of its potential returns per unit of risk. National Storage REIT is currently generating about 0.13 per unit of risk. If you would invest 290.00 in Centuria Industrial REIT on April 25, 2025 and sell it today you would earn a total of 24.00 from holding Centuria Industrial REIT or generate 8.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Centuria Industrial REIT vs. National Storage REIT
Performance |
Timeline |
Centuria Industrial REIT |
National Storage REIT |
Centuria Industrial and National Storage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Centuria Industrial and National Storage
The main advantage of trading using opposite Centuria Industrial and National Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centuria Industrial position performs unexpectedly, National 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 National Storage will offset losses from the drop in National Storage's long position.Centuria Industrial vs. Vicinity Centres | Centuria Industrial vs. Charter Hall Retail | Centuria Industrial vs. Carindale Property Trust | Centuria Industrial vs. Australian Unity Office |
National Storage vs. SKY Metals | National Storage vs. Centaurus Metals | National Storage vs. Aristocrat Leisure | National Storage vs. Metalstech |
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
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |