Pair Correlation Between National Storage and Realty Income

This module allows you to analyze existing cross correlation between National Storage Affiliates Trust and Realty Income Corporation. You can compare the effects of market volatilities on National Storage and Realty Income 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 National Storage with a short position of Realty Income. See also your portfolio center. Please also check ongoing floating volatility patterns of National Storage and Realty Income.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 National Storage Affiliates Tr  vs   Realty Income Corp.
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, National Storage Affiliates Trust is expected to generate 1.66 times more return on investment than Realty Income. However, National Storage is 1.66 times more volatile than Realty Income Corporation. It trades about 0.03 of its potential returns per unit of risk. Realty Income Corporation is currently generating about 0.01 per unit of risk. If you would invest  2,609  in National Storage Affiliates Trust on November 14, 2017 and sell it today you would earn a total of  18  from holding National Storage Affiliates Trust or generate 0.69% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between National Storage and Realty Income
-0.38

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Very good diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

National Storage Aff

  
2 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in National Storage Affiliates Trust are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days.

Realty Income

  
0 

Risk-Adjusted Performance

Over the last 30 days Realty Income Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.