Correlation Between SmartStop Self and Connected Media

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

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

Diversification Opportunities for SmartStop Self and Connected Media

0.0

Correlation Coefficient

SmartStop Self  Connected Media

Pay attention - limited upside

The 3 months correlation between SmartStop and Connected is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SmartStop Self Storage and Connected Media Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Connected Media Tech and SmartStop 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 SmartStop Self Storage are associated (or correlated) with Connected Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Connected Media Tech has no effect on the direction of SmartStop Self i.e., SmartStop Self and Connected Media go up and down completely randomly.

Pair Corralation between SmartStop Self and Connected Media

If you would invest  0.01  in Connected Media Tech on May 16, 2025 and sell it today you would lose  0.00  from holding Connected Media Tech or give up 0.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SmartStop Self Storage  vs.  Connected Media Tech

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.

Connected Media Tech

Risk-Adjusted Performance

Weakest

Over the last 90 days Connected Media Tech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Connected Media is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with SmartStop Self and Connected Media

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

The idea behind SmartStop Self Storage and Connected Media Tech 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.