Correlation Between Arbor Realty and National Storage
Can any of the company-specific risk be diversified away by investing in both Arbor Realty and National 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 Arbor Realty and National Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arbor Realty Trust and National Storage Affiliates, you can compare the effects of market volatilities on Arbor Realty and National 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 Arbor Realty with a short position of National Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arbor Realty and National Storage.
Diversification Opportunities for Arbor Realty and National Storage
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Arbor and National is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Arbor Realty Trust and National Storage Affiliates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Storage Aff and Arbor Realty 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 Arbor Realty Trust are associated (or correlated) with National Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Storage Aff has no effect on the direction of Arbor Realty i.e., Arbor Realty and National Storage go up and down completely randomly.
Pair Corralation between Arbor Realty and National Storage
Considering the 90-day investment horizon Arbor Realty Trust is expected to under-perform the National Storage. In addition to that, Arbor Realty is 1.62 times more volatile than National Storage Affiliates. It trades about -0.16 of its total potential returns per unit of risk. National Storage Affiliates is currently generating about -0.07 per unit of volatility. If you would invest 3,208 in National Storage Affiliates on September 8, 2025 and sell it today you would lose (245.00) from holding National Storage Affiliates or give up 7.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arbor Realty Trust vs. National Storage Affiliates
Performance |
| Timeline |
| Arbor Realty Trust |
| National Storage Aff |
Arbor Realty and National Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arbor Realty and National Storage
The main advantage of trading using opposite Arbor Realty and National Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arbor Realty position performs unexpectedly, National 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 National Storage will offset losses from the drop in National Storage's long position.| Arbor Realty vs. Neinor Homes SA | Arbor Realty vs. ICL Israel Chemicals | Arbor Realty vs. Federal Home Loan | Arbor Realty vs. Silicon Motion Technology |
| National Storage vs. Victura Construction Group | National Storage vs. Sterling Construction | National Storage vs. PDS Biotechnology Corp | National Storage vs. Arizona Metals Corp |
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 the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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