Correlation Between GARDNER DENVER and LIFE STORAGE

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

Diversification Opportunities for GARDNER DENVER and LIFE STORAGE

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between GARDNER and LIFE STORAGE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GARDNER DENVER 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 GARDNER DENVER 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 GARDNER DENVER 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 GARDNER DENVER i.e., GARDNER DENVER and LIFE STORAGE go up and down completely randomly.

Pair Corralation between GARDNER DENVER and LIFE STORAGE

If you would invest (100.00)  in LIFE STORAGE INC on April 7, 2022 and sell it today you would earn a total of  100.00  from holding LIFE STORAGE INC or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

GARDNER DENVER INC  vs.  LIFE STORAGE INC

 Performance (%) 
      Timeline 
GARDNER DENVER INC 
GARDNER Performance
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Over the last 90 days GARDNER DENVER INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, GARDNER DENVER is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
LIFE STORAGE INC 
LIFE STORAGE Performance
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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 newest stock price agitation, may contribute to short-term losses for the retail investors.

GARDNER DENVER and LIFE STORAGE Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with GARDNER DENVER and LIFE STORAGE

The main advantage of trading using opposite GARDNER DENVER and LIFE STORAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GARDNER DENVER 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.

GARDNER DENVER INC

Pair trading matchups for GARDNER DENVER

The idea behind GARDNER DENVER 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.
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 Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

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