Correlation Between Picc Prop and LIFE STORAGE

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

Diversification Opportunities for Picc Prop and LIFE STORAGE

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Picc Prop and LIFE STORAGE

If you would invest  96.00  in Picc Prop Casualty on April 7, 2022 and sell it today you would earn a total of  10.00  from holding Picc Prop Casualty or generate 10.42% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Picc Prop Casualty  vs.  LIFE STORAGE INC

 Performance (%) 
      Timeline 
Picc Prop Casualty 
PPCCF Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Picc Prop Casualty are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Picc Prop may actually be approaching a critical reversion point that can send shares even higher in August 2022.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0599
Payout Ratio
0.38
Last Split Factor
3:2
Forward Annual Dividend Rate
0.06
Dividend Date
2017-08-22
Ex Dividend Date
2022-06-23
Last Split Date
2018-06-27

PPCCF 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 newest stock price agitation, may contribute to short-term losses for the retail investors.

Picc Prop and LIFE STORAGE Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Picc Prop and LIFE STORAGE

The main advantage of trading using opposite Picc Prop and LIFE STORAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Picc Prop 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 Picc Prop Casualty 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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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