Correlation Between Hudson Pacific and CubeSmart
Can any of the company-specific risk be diversified away by investing in both Hudson Pacific and CubeSmart 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 Hudson Pacific and CubeSmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hudson Pacific Properties and CubeSmart, you can compare the effects of market volatilities on Hudson Pacific and CubeSmart 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 Hudson Pacific with a short position of CubeSmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Pacific and CubeSmart.
Diversification Opportunities for Hudson Pacific and CubeSmart
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hudson and CubeSmart is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Pacific Properties and CubeSmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CubeSmart and Hudson Pacific 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 Hudson Pacific Properties are associated (or correlated) with CubeSmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CubeSmart has no effect on the direction of Hudson Pacific i.e., Hudson Pacific and CubeSmart go up and down completely randomly.
Pair Corralation between Hudson Pacific and CubeSmart
Considering the 90-day investment horizon Hudson Pacific Properties is expected to under-perform the CubeSmart. In addition to that, Hudson Pacific is 2.14 times more volatile than CubeSmart. It trades about -0.11 of its total potential returns per unit of risk. CubeSmart is currently generating about -0.05 per unit of volatility. If you would invest 3,850 in CubeSmart on August 18, 2025 and sell it today you would lose (188.00) from holding CubeSmart or give up 4.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hudson Pacific Properties vs. CubeSmart
Performance |
| Timeline |
| Hudson Pacific Properties |
| CubeSmart |
Hudson Pacific and CubeSmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hudson Pacific and CubeSmart
The main advantage of trading using opposite Hudson Pacific and CubeSmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Pacific position performs unexpectedly, CubeSmart 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 CubeSmart will offset losses from the drop in CubeSmart's long position.| Hudson Pacific vs. City Office | Hudson Pacific vs. Piedmont Office Realty | Hudson Pacific vs. Eerly Govt Ppty | Hudson Pacific vs. CBL Associates Properties |
| CubeSmart vs. Rexford Industrial Realty | CubeSmart vs. Federal Realty Investment | CubeSmart vs. EastGroup Properties | CubeSmart vs. First Industrial Realty |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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