Correlation Between Shurgard Self and Home Invest

Can any of the company-specific risk be diversified away by investing in both Shurgard Self and Home Invest 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 Home Invest 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 Home Invest Belgium, you can compare the effects of market volatilities on Shurgard Self and Home Invest 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 Home Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shurgard Self and Home Invest.

Diversification Opportunities for Shurgard Self and Home Invest

-0.13

Correlation Coefficient

Shurgard Self  Home Invest

Good diversification

The 3 months correlation between Shurgard and Home is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shurgard Self Storage and Home Invest Belgium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Invest Belgium 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 Home Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Invest Belgium has no effect on the direction of Shurgard Self i.e., Shurgard Self and Home Invest go up and down completely randomly.

Pair Corralation between Shurgard Self and Home Invest

Assuming the 90 days trading horizon Shurgard Self Storage is expected to generate 1.19 times more return on investment than Home Invest. However, Shurgard Self is 1.19 times more volatile than Home Invest Belgium. It trades about -0.01 of its potential returns per unit of risk. Home Invest Belgium 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 lose (66.00) from holding Shurgard Self Storage or give up 1.92% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Shurgard Self Storage  vs.  Home Invest Belgium

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 current stock price agitation, may contribute to short-term losses for the retail investors.

Home Invest Belgium

Risk-Adjusted Performance

Weakest

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

Pair Trading with Shurgard Self and Home Invest

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

The idea behind Shurgard Self Storage and Home Invest Belgium 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.