Correlation Between Shurgard Self and Atenor SA
Can any of the company-specific risk be diversified away by investing in both Shurgard Self and Atenor SA 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 Shurgard Self and Atenor SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shurgard Self Storage and Atenor SA, you can compare the effects of market volatilities on Shurgard Self and Atenor SA 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 Shurgard Self with a short position of Atenor SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shurgard Self and Atenor SA.
Diversification Opportunities for Shurgard Self and Atenor SA
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shurgard and Atenor is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Shurgard Self Storage and Atenor SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atenor SA and Shurgard Self 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 Shurgard Self Storage are associated (or correlated) with Atenor SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atenor SA has no effect on the direction of Shurgard Self i.e., Shurgard Self and Atenor SA go up and down completely randomly.
Pair Corralation between Shurgard Self and Atenor SA
Assuming the 90 days trading horizon Shurgard Self Storage is expected to generate 0.77 times more return on investment than Atenor SA. However, Shurgard Self Storage is 1.3 times less risky than Atenor SA. It trades about -0.24 of its potential returns per unit of risk. Atenor SA is currently generating about -0.46 per unit of risk. If you would invest 4,100 in Shurgard Self Storage on September 12, 2024 and sell it today you would lose (310.00) from holding Shurgard Self Storage or give up 7.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shurgard Self Storage vs. Atenor SA
Performance |
| Timeline |
| Shurgard Self Storage |
| Atenor SA |
Shurgard Self and Atenor SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shurgard Self and Atenor SA
The main advantage of trading using opposite Shurgard Self and Atenor SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shurgard Self position performs unexpectedly, Atenor SA 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 Atenor SA will offset losses from the drop in Atenor SA's long position.| Shurgard Self vs. Immobiliere Distri Land NV | Shurgard Self vs. Immobel | Shurgard Self vs. Accentis | Shurgard Self vs. Exmar NV |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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