Correlation Between Shurgard Self and EUROPEAN MEDICAL

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

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

Diversification Opportunities for Shurgard Self and EUROPEAN MEDICAL

-0.4

Correlation Coefficient

Shurgard Self  EUROPEAN MEDICAL

Very good diversification

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

Pair Corralation between Shurgard Self and EUROPEAN MEDICAL

Assuming the 90 days trading horizon Shurgard Self Storage is expected to generate 0.37 times more return on investment than EUROPEAN MEDICAL. However, Shurgard Self Storage is 2.72 times less risky than EUROPEAN MEDICAL. It trades about 0.01 of its potential returns per unit of risk. EUROPEAN MEDICAL SOLUTIONS is currently generating about -0.05 per unit of risk. 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

Shurgard Self Storage  vs.  EUROPEAN MEDICAL SOLUTIONS

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.

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.

Pair Trading with Shurgard Self and EUROPEAN MEDICAL

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

The idea behind Shurgard Self Storage and EUROPEAN MEDICAL SOLUTIONS 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.