Correlation Between EUROPEAN MEDICAL and Shurgard Self

Can any of the company-specific risk be diversified away by investing in both EUROPEAN MEDICAL and Shurgard Self 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 EUROPEAN MEDICAL and Shurgard Self into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EUROPEAN MEDICAL SOLUTIONS and Shurgard Self Storage, you can compare the effects of market volatilities on EUROPEAN MEDICAL and Shurgard Self 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 EUROPEAN MEDICAL with a short position of Shurgard Self. Check out your portfolio center. Please also check ongoing floating volatility patterns of EUROPEAN MEDICAL and Shurgard Self.

Diversification Opportunities for EUROPEAN MEDICAL and Shurgard Self

-0.4

Correlation Coefficient

EUROPEAN MEDICAL  Shurgard Self

Very good diversification

The 3 months correlation between EUROPEAN and Shurgard is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding EUROPEAN MEDICAL SOLUTIONS and Shurgard Self Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shurgard Self Storage and EUROPEAN MEDICAL 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 EUROPEAN MEDICAL SOLUTIONS are associated (or correlated) with Shurgard Self. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shurgard Self Storage has no effect on the direction of EUROPEAN MEDICAL i.e., EUROPEAN MEDICAL and Shurgard Self go up and down completely randomly.

Pair Corralation between EUROPEAN MEDICAL and Shurgard Self

Assuming the 90 days trading horizon EUROPEAN MEDICAL SOLUTIONS is expected to under-perform the Shurgard Self. In addition to that, EUROPEAN MEDICAL is 2.72 times more volatile than Shurgard Self Storage. It trades about -0.05 of its total potential returns per unit of risk. Shurgard Self Storage is currently generating about 0.01 per unit of volatility. If you would invest  3,431  in Shurgard Self Storage on May 7, 2025 and sell it today you would earn a total of  14.00  from holding Shurgard Self Storage or generate 0.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

EUROPEAN MEDICAL SOLUTIONS  vs.  Shurgard Self Storage

EUROPEAN MEDICAL SOL

Risk-Adjusted Performance

Weakest

Over the last 90 days EUROPEAN MEDICAL SOLUTIONS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Shurgard Self Storage

Risk-Adjusted Performance

Weakest

Over the last 90 days Shurgard Self Storage has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Shurgard Self is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with EUROPEAN MEDICAL and Shurgard Self

The main advantage of trading using opposite EUROPEAN MEDICAL and Shurgard Self positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EUROPEAN MEDICAL position performs unexpectedly, Shurgard Self 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 Shurgard Self will offset losses from the drop in Shurgard Self's long position.

The idea behind EUROPEAN MEDICAL SOLUTIONS and Shurgard Self Storage pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 CEOs Directory module to screen CEOs from public companies around the world.