Correlation Between Public Storage and Home Loan

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Can any of the company-specific risk be diversified away by investing in both Public Storage and Home Loan 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 Public Storage and Home Loan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Storage DEP and Home Loan Financial, you can compare the effects of market volatilities on Public Storage and Home Loan 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 Public Storage with a short position of Home Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Storage and Home Loan.

Diversification Opportunities for Public Storage and Home Loan

-0.19
  Correlation Coefficient

Good diversification

The 3 months correlation between Public and Home is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Public Storage DEP and Home Loan Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Loan Financial and Public 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 Public Storage DEP are associated (or correlated) with Home Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Loan Financial has no effect on the direction of Public Storage i.e., Public Storage and Home Loan go up and down completely randomly.

Pair Corralation between Public Storage and Home Loan

Assuming the 90 days trading horizon Public Storage DEP is expected to under-perform the Home Loan. In addition to that, Public Storage is 1.39 times more volatile than Home Loan Financial. It trades about -0.02 of its total potential returns per unit of risk. Home Loan Financial is currently generating about 0.12 per unit of volatility. If you would invest  3,344  in Home Loan Financial on September 3, 2025 and sell it today you would earn a total of  105.00  from holding Home Loan Financial or generate 3.14% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Public Storage DEP  vs.  Home Loan Financial

 Performance 
       Timeline  
Public Storage DEP 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Public Storage DEP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Public Storage is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
Home Loan Financial 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Home Loan Financial are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Home Loan is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Public Storage and Home Loan Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Public Storage and Home Loan

The main advantage of trading using opposite Public Storage and Home Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Storage position performs unexpectedly, Home Loan 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 Home Loan will offset losses from the drop in Home Loan's long position.
The idea behind Public Storage DEP and Home Loan Financial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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