Correlation Between Tat Techno and Extra Space
Can any of the company-specific risk be diversified away by investing in both Tat Techno and Extra Space 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 Tat Techno and Extra Space into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tat Techno and Extra Space Storage, you can compare the effects of market volatilities on Tat Techno and Extra Space 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 Tat Techno with a short position of Extra Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tat Techno and Extra Space.
Diversification Opportunities for Tat Techno and Extra Space
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tat and Extra is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Tat Techno and Extra Space Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extra Space Storage and Tat Techno 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 Tat Techno are associated (or correlated) with Extra Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extra Space Storage has no effect on the direction of Tat Techno i.e., Tat Techno and Extra Space go up and down completely randomly.
Pair Corralation between Tat Techno and Extra Space
Given the investment horizon of 90 days Tat Techno is expected to generate 2.13 times more return on investment than Extra Space. However, Tat Techno is 2.13 times more volatile than Extra Space Storage. It trades about 0.15 of its potential returns per unit of risk. Extra Space Storage is currently generating about 0.03 per unit of risk. If you would invest 3,084 in Tat Techno on July 17, 2025 and sell it today you would earn a total of 1,136 from holding Tat Techno or generate 36.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tat Techno vs. Extra Space Storage
Performance |
| Timeline |
| Tat Techno |
| Extra Space Storage |
Tat Techno and Extra Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tat Techno and Extra Space
The main advantage of trading using opposite Tat Techno and Extra Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tat Techno position performs unexpectedly, Extra Space 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 Extra Space will offset losses from the drop in Extra Space's long position.| Tat Techno vs. Air Industries Group | Tat Techno vs. Asia Pacific Wire | Tat Techno vs. CPI Aerostructures | Tat Techno vs. National Presto Industries |
| Extra Space vs. Public Storage | Extra Space vs. CubeSmart | Extra Space vs. National Storage Affiliates | Extra Space vs. Prologis |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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