Correlation Between Reborn Coffee and National Storage
Can any of the company-specific risk be diversified away by investing in both Reborn Coffee 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 Reborn Coffee and National Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reborn Coffee and National Storage REIT, you can compare the effects of market volatilities on Reborn Coffee 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 Reborn Coffee with a short position of National Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reborn Coffee and National Storage.
Diversification Opportunities for Reborn Coffee and National Storage
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Reborn and National is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Reborn Coffee 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 Reborn Coffee 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 Reborn Coffee 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 Reborn Coffee i.e., Reborn Coffee and National Storage go up and down completely randomly.
Pair Corralation between Reborn Coffee and National Storage
Given the investment horizon of 90 days Reborn Coffee is expected to under-perform the National Storage. In addition to that, Reborn Coffee is 2.09 times more volatile than National Storage REIT. It trades about -0.09 of its total potential returns per unit of risk. National Storage REIT is currently generating about 0.13 per unit of volatility. If you would invest 158.00 in National Storage REIT on September 13, 2025 and sell it today you would earn a total of 30.00 from holding National Storage REIT or generate 18.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Reborn Coffee vs. National Storage REIT
Performance |
| Timeline |
| Reborn Coffee |
| National Storage REIT |
Reborn Coffee and National Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Reborn Coffee and National Storage
The main advantage of trading using opposite Reborn Coffee and National Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reborn Coffee 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.| Reborn Coffee vs. Bt Brands | Reborn Coffee vs. U Power Limited | Reborn Coffee vs. Creative Global Technology | Reborn Coffee vs. Cenntro Electric Group |
| National Storage vs. The Tinley Beverage | National Storage vs. Roadrunner Transportation Systems | National Storage vs. Purple Beverage | National Storage vs. Konoike Transport CoLtd |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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