Correlation Between Fossil and SmartStop Self
Can any of the company-specific risk be diversified away by investing in both Fossil and SmartStop Self 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 Fossil and SmartStop Self into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fossil Group and SmartStop Self Storage, you can compare the effects of market volatilities on Fossil and SmartStop Self 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 Fossil with a short position of SmartStop Self. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fossil and SmartStop Self.
Diversification Opportunities for Fossil and SmartStop Self
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fossil and SmartStop is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Fossil Group and SmartStop Self Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartStop Self Storage and Fossil 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 Fossil Group are associated (or correlated) with SmartStop Self. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartStop Self Storage has no effect on the direction of Fossil i.e., Fossil and SmartStop Self go up and down completely randomly.
Pair Corralation between Fossil and SmartStop Self
Given the investment horizon of 90 days Fossil Group is expected to generate 1.05 times more return on investment than SmartStop Self. However, Fossil is 1.05 times more volatile than SmartStop Self Storage. It trades about 0.03 of its potential returns per unit of risk. SmartStop Self Storage is currently generating about 0.01 per unit of risk. If you would invest 131.00 in Fossil Group on September 2, 2024 and sell it today you would earn a total of 15.00 from holding Fossil Group or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Fossil Group vs. SmartStop Self Storage
Performance |
| Timeline |
| Fossil Group |
| SmartStop Self Storage |
Fossil and SmartStop Self Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fossil and SmartStop Self
The main advantage of trading using opposite Fossil and SmartStop Self positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fossil position performs unexpectedly, SmartStop Self 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 SmartStop Self will offset losses from the drop in SmartStop Self's long position.| Fossil vs. Lanvin Group Holdings | Fossil vs. Signet Jewelers | Fossil vs. Tapestry | Fossil vs. Capri Holdings |
| SmartStop Self vs. LXP Industrial Trust | SmartStop Self vs. First Industrial Realty | SmartStop Self vs. Plymouth Industrial REIT | SmartStop Self vs. Terreno Realty |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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