Correlation Between National Storage and CoreCivic
Can any of the company-specific risk be diversified away by investing in both National Storage and CoreCivic 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 National Storage and CoreCivic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Storage Affiliates and CoreCivic, you can compare the effects of market volatilities on National Storage and CoreCivic 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 CoreCivic. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Storage and CoreCivic.
Diversification Opportunities for National Storage and CoreCivic
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between National and CoreCivic is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding National Storage Affiliates and CoreCivic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoreCivic 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 are associated (or correlated) with CoreCivic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoreCivic has no effect on the direction of National Storage i.e., National Storage and CoreCivic go up and down completely randomly.
Pair Corralation between National Storage and CoreCivic
Considering the 90-day investment horizon National Storage Affiliates is expected to generate 0.66 times more return on investment than CoreCivic. However, National Storage Affiliates is 1.52 times less risky than CoreCivic. It trades about -0.07 of its potential returns per unit of risk. CoreCivic is currently generating about -0.09 per unit of risk. If you would invest 3,181 in National Storage Affiliates on September 11, 2025 and sell it today you would lose (221.00) from holding National Storage Affiliates or give up 6.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Storage Affiliates vs. CoreCivic
Performance |
| Timeline |
| National Storage Aff |
| CoreCivic |
National Storage and CoreCivic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Storage and CoreCivic
The main advantage of trading using opposite National Storage and CoreCivic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Storage position performs unexpectedly, CoreCivic 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 CoreCivic will offset losses from the drop in CoreCivic's long position.| National Storage vs. LXP Industrial Trust | National Storage vs. Douglas Emmett | National Storage vs. Inventrust Properties Corp | National Storage vs. EPR Properties |
| CoreCivic vs. EPR Properties | CoreCivic vs. Agree Realty | CoreCivic vs. Inventrust Properties Corp | CoreCivic vs. Empire State 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |