Correlation Between IShares MSCI and SmartStop Self

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

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

Diversification Opportunities for IShares MSCI and SmartStop Self

-1.0

Correlation Coefficient

IShares MSCI  SmartStop Self

Pay attention - limited upside

The 3 months correlation between IShares and SmartStop is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI 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 IShares MSCI 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 iShares MSCI 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 IShares MSCI i.e., IShares MSCI and SmartStop Self go up and down completely randomly.

Pair Corralation between IShares MSCI and SmartStop Self

If you would invest  3,316  in SmartStop Self Storage on July 18, 2025 and sell it today you would earn a total of  0.00  from holding SmartStop Self Storage or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Strong
Accuracy	12.5%
Values	Daily Returns

iShares MSCI  vs.  SmartStop Self Storage

iShares MSCI

Risk-Adjusted Performance

Weakest

Over the last 90 days iShares MSCI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, IShares MSCI is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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 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 IShares MSCI and SmartStop Self

The main advantage of trading using opposite IShares MSCI and SmartStop Self positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI 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 iShares MSCI 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.