Correlation Between SmartStop Self and Flagstar Bancorp
Can any of the company-specific risk be diversified away by investing in both SmartStop Self and Flagstar Bancorp 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 SmartStop Self and Flagstar Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SmartStop Self Storage and Flagstar Bancorp, you can compare the effects of market volatilities on SmartStop Self and Flagstar Bancorp 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 SmartStop Self with a short position of Flagstar Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SmartStop Self and Flagstar Bancorp.
Diversification Opportunities for SmartStop Self and Flagstar Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SmartStop and Flagstar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SmartStop Self Storage and Flagstar Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flagstar Bancorp and SmartStop 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 SmartStop Self Storage are associated (or correlated) with Flagstar Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flagstar Bancorp has no effect on the direction of SmartStop Self i.e., SmartStop Self and Flagstar Bancorp go up and down completely randomly.
Pair Corralation between SmartStop Self and Flagstar Bancorp
If you would invest 1,218 in SmartStop Self Storage on September 14, 2024 and sell it today you would lose (333.00) from holding SmartStop Self Storage or give up 27.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
SmartStop Self Storage vs. Flagstar Bancorp
Performance |
| Timeline |
| SmartStop Self Storage |
| Flagstar Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SmartStop Self and Flagstar Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SmartStop Self and Flagstar Bancorp
The main advantage of trading using opposite SmartStop Self and Flagstar Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SmartStop Self position performs unexpectedly, Flagstar Bancorp 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 Flagstar Bancorp will offset losses from the drop in Flagstar Bancorp's long position.| SmartStop Self vs. Rexford Industrial Realty | SmartStop Self vs. LXP Industrial Trust | SmartStop Self vs. Public Storage | SmartStop Self vs. Rexford Industrial Realty |
| Flagstar Bancorp vs. ServiceNow | Flagstar Bancorp vs. U Power Limited | Flagstar Bancorp vs. Datadog | Flagstar Bancorp vs. SmartStop Self Storage |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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