Correlation Between 4imprint Group and SmartStop Self

Can any of the company-specific risk be diversified away by investing in both 4imprint Group 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 4imprint Group and SmartStop Self into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 4imprint Group plc and SmartStop Self Storage, you can compare the effects of market volatilities on 4imprint Group 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 4imprint Group with a short position of SmartStop Self. Check out your portfolio center. Please also check ongoing floating volatility patterns of 4imprint Group and SmartStop Self.

Diversification Opportunities for 4imprint Group and SmartStop Self

-0.6

Correlation Coefficient

4imprint Group  SmartStop Self

Excellent diversification

The 3 months correlation between 4imprint and SmartStop is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding 4imprint Group plc 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 4imprint Group 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 4imprint Group plc 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 4imprint Group i.e., 4imprint Group and SmartStop Self go up and down completely randomly.

Pair Corralation between 4imprint Group and SmartStop Self

Assuming the 90 days horizon 4imprint Group plc is expected to under-perform the SmartStop Self. In addition to that, 4imprint Group is 74.0 times more volatile than SmartStop Self Storage. It trades about -0.13 of its total potential returns per unit of risk. SmartStop Self Storage is currently generating about 0.18 per unit of volatility. If you would invest  3,289  in SmartStop Self Storage on May 4, 2025 and sell it today you would earn a total of  27.00  from holding SmartStop Self Storage or generate 0.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	93.44%
Values	Daily Returns

4imprint Group plc  vs.  SmartStop Self Storage

4imprint Group plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days 4imprint Group plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

SmartStop Self Storage

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SmartStop Self Storage are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, SmartStop Self is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with 4imprint Group and SmartStop Self

The main advantage of trading using opposite 4imprint Group and SmartStop Self positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 4imprint Group 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 4imprint Group plc 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.

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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.