Correlation Between TERADATA and Public Storage

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

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

Diversification Opportunities for TERADATA and Public Storage

-0.08

Correlation Coefficient

TERADATA  Public Storage

Good diversification

The 3 months correlation between TERADATA and Public is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding TERADATA and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage and TERADATA 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 TERADATA are associated (or correlated) with Public Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Storage has no effect on the direction of TERADATA i.e., TERADATA and Public Storage go up and down completely randomly.

Pair Corralation between TERADATA and Public Storage

Assuming the 90 days trading horizon TERADATA is expected to generate 0.91 times more return on investment than Public Storage. However, TERADATA is 1.1 times less risky than Public Storage. It trades about 0.19 of its potential returns per unit of risk. Public Storage is currently generating about 0.1 per unit of risk. If you would invest  2,520  in TERADATA on September 4, 2024 and sell it today you would earn a total of  420.00  from holding TERADATA or generate 16.67% return on investment over 90 days.

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

TERADATA  vs.  Public Storage

TERADATA

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TERADATA are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, TERADATA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Public Storage

Risk-Adjusted Performance

7 of 100

OK

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

Pair Trading with TERADATA and Public Storage

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

The idea behind TERADATA and Public Storage 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.