Correlation Between OFS Capital and National Storage
Can any of the company-specific risk be diversified away by investing in both OFS Capital 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 OFS Capital and National Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFS Capital Corp and National Storage REIT, you can compare the effects of market volatilities on OFS Capital 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 OFS Capital with a short position of National Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFS Capital and National Storage.
Diversification Opportunities for OFS Capital and National Storage
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OFS and National is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding OFS Capital Corp and National Storage REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Storage REIT and OFS Capital 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 OFS Capital Corp 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 REIT has no effect on the direction of OFS Capital i.e., OFS Capital and National Storage go up and down completely randomly.
Pair Corralation between OFS Capital and National Storage
Considering the 90-day investment horizon OFS Capital Corp is expected to under-perform the National Storage. But the stock apears to be less risky and, when comparing its historical volatility, OFS Capital Corp is 1.22 times less risky than National Storage. The stock trades about -0.07 of its potential returns per unit of risk. The National Storage REIT is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 161.00 in National Storage REIT on September 1, 2025 and sell it today you would lose (10.00) from holding National Storage REIT or give up 6.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
OFS Capital Corp vs. National Storage REIT
Performance |
| Timeline |
| OFS Capital Corp |
| National Storage REIT |
OFS Capital and National Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFS Capital and National Storage
The main advantage of trading using opposite OFS Capital and National Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFS Capital 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.| OFS Capital vs. Salesforce | OFS Capital vs. Data Evolution Holdings | OFS Capital vs. Global E Online | OFS Capital vs. CarsalesCom Ltd ADR |
| National Storage vs. Reborn Coffee | National Storage vs. Trip Technologies | National Storage vs. Coffeesmiths Collective | National Storage vs. Juma Technology 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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