Correlation Between Tuxis and Extra Space
Can any of the company-specific risk be diversified away by investing in both Tuxis 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 Tuxis and Extra Space into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tuxis and Extra Space Storage, you can compare the effects of market volatilities on Tuxis 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 Tuxis with a short position of Extra Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuxis and Extra Space.
Diversification Opportunities for Tuxis and Extra Space
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tuxis and Extra is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Tuxis 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 Tuxis 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 Tuxis 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 Tuxis i.e., Tuxis and Extra Space go up and down completely randomly.
Pair Corralation between Tuxis and Extra Space
Given the investment horizon of 90 days Tuxis is expected to under-perform the Extra Space. But the pink sheet apears to be less risky and, when comparing its historical volatility, Tuxis is 2.16 times less risky than Extra Space. The pink sheet trades about -0.12 of its potential returns per unit of risk. The Extra Space Storage is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 14,617 in Extra Space Storage on July 20, 2025 and sell it today you would earn a total of 537.00 from holding Extra Space Storage or generate 3.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tuxis vs. Extra Space Storage
Performance |
| Timeline |
| Tuxis |
| Extra Space Storage |
Tuxis and Extra Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuxis and Extra Space
The main advantage of trading using opposite Tuxis and Extra Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuxis 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.The idea behind Tuxis and Extra Space Storage 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.| Extra Space vs. VICI Properties | Extra Space vs. Iron Mountain Incorporated | Extra Space vs. Ventas Inc | Extra Space vs. AvalonBay Communities |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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