Correlation Between SCANDMEDICAL SOLDK and Safestore Holdings
Can any of the company-specific risk be diversified away by investing in both SCANDMEDICAL SOLDK and Safestore Holdings 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 SCANDMEDICAL SOLDK and Safestore Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANDMEDICAL SOLDK 040 and Safestore Holdings plc, you can compare the effects of market volatilities on SCANDMEDICAL SOLDK and Safestore Holdings 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 SCANDMEDICAL SOLDK with a short position of Safestore Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDMEDICAL SOLDK and Safestore Holdings.
Diversification Opportunities for SCANDMEDICAL SOLDK and Safestore Holdings
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SCANDMEDICAL and Safestore is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding SCANDMEDICAL SOLDK 040 and Safestore Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safestore Holdings plc and SCANDMEDICAL SOLDK 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 SCANDMEDICAL SOLDK 040 are associated (or correlated) with Safestore Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safestore Holdings plc has no effect on the direction of SCANDMEDICAL SOLDK i.e., SCANDMEDICAL SOLDK and Safestore Holdings go up and down completely randomly.
Pair Corralation between SCANDMEDICAL SOLDK and Safestore Holdings
Assuming the 90 days horizon SCANDMEDICAL SOLDK 040 is expected to under-perform the Safestore Holdings. But the stock apears to be less risky and, when comparing its historical volatility, SCANDMEDICAL SOLDK 040 is 1.39 times less risky than Safestore Holdings. The stock trades about -0.55 of its potential returns per unit of risk. The Safestore Holdings plc is currently generating about -0.37 of returns per unit of risk over similar time horizon. If you would invest 905.00 in Safestore Holdings plc on September 29, 2024 and sell it today you would lose (105.00) from holding Safestore Holdings plc or give up 11.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANDMEDICAL SOLDK 040 vs. Safestore Holdings plc
Performance |
| Timeline |
| SCANDMEDICAL SOLDK 040 |
| Safestore Holdings plc |
SCANDMEDICAL SOLDK and Safestore Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANDMEDICAL SOLDK and Safestore Holdings
The main advantage of trading using opposite SCANDMEDICAL SOLDK and Safestore Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDMEDICAL SOLDK position performs unexpectedly, Safestore Holdings 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 Safestore Holdings will offset losses from the drop in Safestore Holdings' long position.| SCANDMEDICAL SOLDK vs. CarsalesCom | SCANDMEDICAL SOLDK vs. Adtalem Global Education | SCANDMEDICAL SOLDK vs. CANON MARKETING JP | SCANDMEDICAL SOLDK vs. DeVry Education Group |
| Safestore Holdings vs. Calibre Mining Corp | Safestore Holdings vs. Jacquet Metal Service | Safestore Holdings vs. Coeur Mining | Safestore Holdings vs. GRIFFIN MINING LTD |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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