Correlation Between Saul Centers and SmartStop Self

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

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

Diversification Opportunities for Saul Centers and SmartStop Self

0.52

Correlation Coefficient

Saul Centers  SmartStop Self

Very weak diversification

The 3 months correlation between Saul and SmartStop is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Saul Centers and SmartStop Self Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartStop Self Storage and Saul Centers 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 Saul Centers are associated (or correlated) with SmartStop Self. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartStop Self Storage has no effect on the direction of Saul Centers i.e., Saul Centers and SmartStop Self go up and down completely randomly.

Pair Corralation between Saul Centers and SmartStop Self

Considering the 90-day investment horizon Saul Centers is expected to generate 0.96 times more return on investment than SmartStop Self. However, Saul Centers is 1.04 times less risky than SmartStop Self. It trades about -0.04 of its potential returns per unit of risk. SmartStop Self Storage is currently generating about -0.03 per unit of risk. If you would invest  3,379  in Saul Centers on May 18, 2025 and sell it today you would lose (114.00) from holding Saul Centers or give up 3.37% of portfolio value over 90 days.

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

Saul Centers  vs.  SmartStop Self Storage

Saul Centers

Risk-Adjusted Performance

Weakest

Over the last 90 days Saul Centers has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Saul Centers is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

SmartStop Self Storage

Risk-Adjusted Performance

Weakest

Over the last 90 days SmartStop Self Storage has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, SmartStop Self is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Saul Centers and SmartStop Self

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

The idea behind Saul Centers and SmartStop 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.