Correlation Between Apple and LIFE STORAGE

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

Diversification Opportunities for Apple and LIFE STORAGE

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Apple and LIFE STORAGE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and LIFE STORAGE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIFE STORAGE INC and Apple 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 Apple Inc are associated (or correlated) with LIFE STORAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIFE STORAGE INC has no effect on the direction of Apple i.e., Apple and LIFE STORAGE go up and down completely randomly.

Pair Corralation between Apple and LIFE STORAGE

If you would invest  14,826  in Apple Inc on May 15, 2022 and sell it today you would earn a total of  2,384  from holding Apple Inc or generate 16.08% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Apple Inc  vs.  LIFE STORAGE INC

 Performance (%) 
       Timeline  
Apple Inc 
Apple Performance
10 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively sluggish basic indicators, Apple revealed solid returns over the last few months and may actually be approaching a breakup point.

Apple Price Channel

LIFE STORAGE INC 
LIFE STORAGE Performance
0 of 100
Over the last 90 days LIFE STORAGE INC has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, LIFE STORAGE is not utilizing all of its potentials. The new stock price agitation, may contribute to short-term losses for the retail investors.

Apple and LIFE STORAGE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Apple and LIFE STORAGE

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

LIFE STORAGE INC

Pair trading matchups for LIFE STORAGE

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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