Correlation Between SmartStop Self and Stagwell
Can any of the company-specific risk be diversified away by investing in both SmartStop Self and Stagwell 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 Stagwell 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 Stagwell, you can compare the effects of market volatilities on SmartStop Self and Stagwell 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 Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of SmartStop Self and Stagwell.
Diversification Opportunities for SmartStop Self and Stagwell
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between SmartStop and Stagwell is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding SmartStop Self Storage and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell 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 Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of SmartStop Self i.e., SmartStop Self and Stagwell go up and down completely randomly.
Pair Corralation between SmartStop Self and Stagwell
Assuming the 90 days horizon SmartStop Self is expected to generate 34.03 times less return on investment than Stagwell. But when comparing it to its historical volatility, SmartStop Self Storage is 20.69 times less risky than Stagwell. It trades about 0.22 of its potential returns per unit of risk. Stagwell is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 659.00 in Stagwell on September 3, 2024 and sell it today you would earn a total of 127.00 from holding Stagwell or generate 19.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
SmartStop Self Storage vs. Stagwell
Performance |
| Timeline |
| SmartStop Self Storage |
| Stagwell |
SmartStop Self and Stagwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SmartStop Self and Stagwell
The main advantage of trading using opposite SmartStop Self and Stagwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SmartStop Self position performs unexpectedly, Stagwell 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 Stagwell will offset losses from the drop in Stagwell's long position.| SmartStop Self vs. LXP Industrial Trust | SmartStop Self vs. First Industrial Realty | SmartStop Self vs. Plymouth Industrial REIT | SmartStop Self vs. Terreno Realty |
| Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Omnicom Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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