Correlation Between Safestore Holdings and Grupo Carso
Can any of the company-specific risk be diversified away by investing in both Safestore Holdings and Grupo Carso 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 Safestore Holdings and Grupo Carso into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safestore Holdings plc and Grupo Carso SAB, you can compare the effects of market volatilities on Safestore Holdings and Grupo Carso 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 Safestore Holdings with a short position of Grupo Carso. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safestore Holdings and Grupo Carso.
Diversification Opportunities for Safestore Holdings and Grupo Carso
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Safestore and Grupo is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Safestore Holdings plc and Grupo Carso SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Carso SAB and Safestore Holdings 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 Safestore Holdings plc are associated (or correlated) with Grupo Carso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Carso SAB has no effect on the direction of Safestore Holdings i.e., Safestore Holdings and Grupo Carso go up and down completely randomly.
Pair Corralation between Safestore Holdings and Grupo Carso
Assuming the 90 days horizon Safestore Holdings plc is expected to under-perform the Grupo Carso. In addition to that, Safestore Holdings is 1.75 times more volatile than Grupo Carso SAB. It trades about -0.18 of its total potential returns per unit of risk. Grupo Carso SAB is currently generating about 0.16 per unit of volatility. If you would invest 520.00 in Grupo Carso SAB on October 30, 2024 and sell it today you would earn a total of 30.00 from holding Grupo Carso SAB or generate 5.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Safestore Holdings plc vs. Grupo Carso SAB
Performance |
| Timeline |
| Safestore Holdings plc |
| Grupo Carso SAB |
Safestore Holdings and Grupo Carso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safestore Holdings and Grupo Carso
The main advantage of trading using opposite Safestore Holdings and Grupo Carso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safestore Holdings position performs unexpectedly, Grupo Carso 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 Grupo Carso will offset losses from the drop in Grupo Carso's long position.| Safestore Holdings vs. Materialise NV | Safestore Holdings vs. De Grey Mining | Safestore Holdings vs. Stag Industrial | Safestore Holdings vs. GALENA MINING LTD |
| Grupo Carso vs. Westinghouse Air Brake | Grupo Carso vs. De Grey Mining | Grupo Carso vs. Perseus Mining Limited | Grupo Carso vs. ARDAGH METAL PACDL 0001 |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |