Correlation Between Shurgard Self and Sofina Socit
Can any of the company-specific risk be diversified away by investing in both Shurgard Self and Sofina Socit 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 Sofina Socit 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 Sofina Socit Anonyme, you can compare the effects of market volatilities on Shurgard Self and Sofina Socit 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 Sofina Socit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shurgard Self and Sofina Socit.
Diversification Opportunities for Shurgard Self and Sofina Socit
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shurgard and Sofina is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shurgard Self Storage and Sofina Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sofina Socit Anonyme 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 Sofina Socit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sofina Socit Anonyme has no effect on the direction of Shurgard Self i.e., Shurgard Self and Sofina Socit go up and down completely randomly.
Pair Corralation between Shurgard Self and Sofina Socit
Assuming the 90 days trading horizon Shurgard Self Storage is expected to under-perform the Sofina Socit. In addition to that, Shurgard Self is 1.04 times more volatile than Sofina Socit Anonyme. It trades about -0.01 of its total potential returns per unit of risk. Sofina Socit Anonyme is currently generating about 0.0 per unit of volatility. If you would invest 22,715 in Sofina Socit Anonyme on August 27, 2024 and sell it today you would lose (535.00) from holding Sofina Socit Anonyme or give up 2.36% 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. Sofina Socit Anonyme
Performance |
| Timeline |
| Shurgard Self Storage |
| Sofina Socit Anonyme |
Shurgard Self and Sofina Socit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shurgard Self and Sofina Socit
The main advantage of trading using opposite Shurgard Self and Sofina Socit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shurgard Self position performs unexpectedly, Sofina Socit 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 Sofina Socit will offset losses from the drop in Sofina Socit's long position.| Shurgard Self vs. VGP NV | Shurgard Self vs. Warehouses de Pauw | Shurgard Self vs. Xior Student Housing | Shurgard Self vs. Aedifica |
| Sofina Socit vs. Retail Estates | Sofina Socit vs. Home Invest Belgium | Sofina Socit vs. Shurgard Self Storage | Sofina Socit vs. Vastned Retail Belgium |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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