Correlation Between ProStar Holdings and National Retail
Can any of the company-specific risk be diversified away by investing in both ProStar Holdings and National Retail 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 ProStar Holdings and National Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProStar Holdings and National Retail Properties, you can compare the effects of market volatilities on ProStar Holdings and National Retail 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 ProStar Holdings with a short position of National Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProStar Holdings and National Retail.
Diversification Opportunities for ProStar Holdings and National Retail
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between ProStar and National is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding ProStar Holdings and National Retail Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Retail Prop and ProStar Holdings 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 ProStar Holdings are associated (or correlated) with National Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Retail Prop has no effect on the direction of ProStar Holdings i.e., ProStar Holdings and National Retail go up and down completely randomly.
Pair Corralation between ProStar Holdings and National Retail
Assuming the 90 days horizon ProStar Holdings is expected to generate 9.24 times more return on investment than National Retail. However, ProStar Holdings is 9.24 times more volatile than National Retail Properties. It trades about 0.07 of its potential returns per unit of risk. National Retail Properties is currently generating about 0.0 per unit of risk. If you would invest 8.40 in ProStar Holdings on September 1, 2025 and sell it today you would earn a total of 1.60 from holding ProStar Holdings or generate 19.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
ProStar Holdings vs. National Retail Properties
Performance |
| Timeline |
| ProStar Holdings |
| National Retail Prop |
ProStar Holdings and National Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProStar Holdings and National Retail
The main advantage of trading using opposite ProStar Holdings and National Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProStar Holdings position performs unexpectedly, National Retail 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 Retail will offset losses from the drop in National Retail's long position.| ProStar Holdings vs. National Retail Properties | ProStar Holdings vs. Morgan Advanced Materials | ProStar Holdings vs. Borr Drilling | ProStar Holdings vs. AKITA Drilling |
| National Retail vs. Trio Tech International | National Retail vs. Candlewood Hotel | National Retail vs. Oasis Hotel Resort | National Retail vs. Evertz Technologies Limited |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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