Correlation Between Global Medical and National Storage

Can any of the company-specific risk be diversified away by investing in both Global Medical 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 Global Medical and National Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Global Medical REIT and National Storage Affiliates, you can compare the effects of market volatilities on Global Medical 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 Global Medical with a short position of National Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Medical and National Storage.

Diversification Opportunities for Global Medical and National Storage

-0.29

Correlation Coefficient

Global Medical  National Storage

Very good diversification

The 3 months correlation between Global and National is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Global Medical REIT and National Storage Affiliates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Storage Aff and Global Medical 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 Global Medical REIT 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 Aff has no effect on the direction of Global Medical i.e., Global Medical and National Storage go up and down completely randomly.

Pair Corralation between Global Medical and National Storage

Given the investment horizon of 90 days Global Medical REIT is expected to generate 1.31 times more return on investment than National Storage. However, Global Medical is 1.31 times more volatile than National Storage Affiliates. It trades about -0.08 of its potential returns per unit of risk. National Storage Affiliates is currently generating about -0.18 per unit of risk. If you would invest  750.00  in Global Medical REIT on May 7, 2025 and sell it today you would lose (81.00) from holding Global Medical REIT or give up 10.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Global Medical REIT  vs.  National Storage Affiliates

Global Medical REIT

Risk-Adjusted Performance

Weakest

Over the last 90 days Global Medical REIT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

National Storage Aff

Risk-Adjusted Performance

Weakest

Over the last 90 days National Storage Affiliates has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Global Medical and National Storage

The main advantage of trading using opposite Global Medical and National Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Medical 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.

The idea behind Global Medical REIT and National Storage Affiliates 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.