Correlation Between CubeSmart and Rexford Industrial
Can any of the company-specific risk be diversified away by investing in both CubeSmart and Rexford Industrial 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 CubeSmart and Rexford Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CubeSmart and Rexford Industrial Realty, you can compare the effects of market volatilities on CubeSmart and Rexford Industrial 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 CubeSmart with a short position of Rexford Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CubeSmart and Rexford Industrial.
Diversification Opportunities for CubeSmart and Rexford Industrial
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CubeSmart and Rexford is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding CubeSmart and Rexford Industrial Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rexford Industrial Realty and CubeSmart 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 CubeSmart are associated (or correlated) with Rexford Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rexford Industrial Realty has no effect on the direction of CubeSmart i.e., CubeSmart and Rexford Industrial go up and down completely randomly.
Pair Corralation between CubeSmart and Rexford Industrial
Given the investment horizon of 90 days CubeSmart is expected to generate 4.07 times less return on investment than Rexford Industrial. But when comparing it to its historical volatility, CubeSmart is 1.18 times less risky than Rexford Industrial. It trades about 0.05 of its potential returns per unit of risk. Rexford Industrial Realty is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3,650 in Rexford Industrial Realty on July 21, 2025 and sell it today you would earn a total of 726.00 from holding Rexford Industrial Realty or generate 19.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CubeSmart vs. Rexford Industrial Realty
Performance |
| Timeline |
| CubeSmart |
| Rexford Industrial Realty |
CubeSmart and Rexford Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CubeSmart and Rexford Industrial
The main advantage of trading using opposite CubeSmart and Rexford Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CubeSmart position performs unexpectedly, Rexford Industrial 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 Rexford Industrial will offset losses from the drop in Rexford Industrial's long position.| CubeSmart vs. Rexford Industrial Realty | CubeSmart vs. EastGroup Properties | CubeSmart vs. Lineage, Common Stock | CubeSmart vs. Federal Realty Investment |
| Rexford Industrial vs. EastGroup Properties | Rexford Industrial vs. CubeSmart | Rexford Industrial vs. Lineage, Common Stock | Rexford Industrial vs. AGNC Investment 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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