Correlation Between Talon Metals and Extra Space
Can any of the company-specific risk be diversified away by investing in both Talon Metals 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 Talon Metals and Extra Space into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Talon Metals Corp and Extra Space Storage, you can compare the effects of market volatilities on Talon Metals 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 Talon Metals with a short position of Extra Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of Talon Metals and Extra Space.
Diversification Opportunities for Talon Metals and Extra Space
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Talon and Extra is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Talon Metals Corp 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 Talon Metals 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 Talon Metals Corp 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 Talon Metals i.e., Talon Metals and Extra Space go up and down completely randomly.
Pair Corralation between Talon Metals and Extra Space
Assuming the 90 days horizon Talon Metals Corp is expected to generate 3.32 times more return on investment than Extra Space. However, Talon Metals is 3.32 times more volatile than Extra Space Storage. It trades about 0.19 of its potential returns per unit of risk. Extra Space Storage is currently generating about -0.02 per unit of risk. If you would invest 20.00 in Talon Metals Corp on July 15, 2025 and sell it today you would earn a total of 16.00 from holding Talon Metals Corp or generate 80.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Talon Metals Corp vs. Extra Space Storage
Performance |
| Timeline |
| Talon Metals Corp |
| Extra Space Storage |
Talon Metals and Extra Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Talon Metals and Extra Space
The main advantage of trading using opposite Talon Metals and Extra Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Talon Metals 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.| Talon Metals vs. Canada Nickel | Talon Metals vs. Cypress Development Corp | Talon Metals vs. FPX Nickel Corp | Talon Metals vs. Frontier Lithium |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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