Correlation Between Extra Space and Maple Leaf

Can any of the company-specific risk be diversified away by investing in both Extra Space and Maple Leaf 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 Extra Space and Maple Leaf into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Extra Space and Maple Leaf

0.15

Correlation Coefficient

Extra Space  Maple Leaf

Average diversification

The 3 months correlation between Extra and Maple is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Extra Space Storage and Maple Leaf Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Foods and Extra Space 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 Extra Space Storage are associated (or correlated) with Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Foods has no effect on the direction of Extra Space i.e., Extra Space and Maple Leaf go up and down completely randomly.

Pair Corralation between Extra Space and Maple Leaf

Assuming the 90 days trading horizon Extra Space is expected to generate 2.84 times less return on investment than Maple Leaf. But when comparing it to its historical volatility, Extra Space Storage is 1.25 times less risky than Maple Leaf. It trades about 0.1 of its potential returns per unit of risk. Maple Leaf Foods is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  1,526  in Maple Leaf Foods on April 21, 2025 and sell it today you would earn a total of  374.00  from holding Maple Leaf Foods or generate 24.51% return on investment over 90 days.

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

Extra Space Storage  vs.  Maple Leaf Foods

Extra Space Storage

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Extra Space Storage are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Extra Space may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Maple Leaf Foods

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Maple Leaf Foods are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Maple Leaf unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Extra Space and Maple Leaf

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

The idea behind Extra Space Storage and Maple Leaf Foods 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.