Correlation Between Safestore Holdings and Apple
Can any of the company-specific risk be diversified away by investing in both Safestore Holdings and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on Safestore Holdings and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safestore Holdings and Apple.
Diversification Opportunities for Safestore Holdings and Apple
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Safestore and Apple is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Safestore Holdings plc and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Safestore Holdings i.e., Safestore Holdings and Apple go up and down completely randomly.
Pair Corralation between Safestore Holdings and Apple
Assuming the 90 days horizon Safestore Holdings plc is expected to under-perform the Apple. In addition to that, Safestore Holdings is 2.06 times more volatile than Apple Inc. It trades about 0.0 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.08 per unit of volatility. If you would invest 14,396 in Apple Inc on September 3, 2024 and sell it today you would earn a total of 9,337 from holding Apple Inc or generate 64.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.69% |
| Values | Daily Returns |
Safestore Holdings plc vs. Apple Inc
Performance |
| Timeline |
| Safestore Holdings plc |
| Apple Inc |
Safestore Holdings and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safestore Holdings and Apple
The main advantage of trading using opposite Safestore Holdings and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safestore Holdings position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Safestore Holdings vs. Apple Inc | Safestore Holdings vs. Microsoft | Safestore Holdings vs. Amazon Inc | Safestore Holdings vs. Alphabet Inc Class C |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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