Correlation Between SmartStop Self and Advanced Health

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

Diversification Opportunities for SmartStop Self and Advanced Health

-0.19

Correlation Coefficient

SmartStop Self  Advanced Health

Good diversification

The 3 months correlation between SmartStop and Advanced is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding SmartStop Self Storage and Advanced Health Intelligence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Health Inte 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 Advanced Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Health Inte has no effect on the direction of SmartStop Self i.e., SmartStop Self and Advanced Health go up and down completely randomly.

Pair Corralation between SmartStop Self and Advanced Health

Considering the 90-day investment horizon SmartStop Self Storage is expected to under-perform the Advanced Health. But the stock apears to be less risky and, when comparing its historical volatility, SmartStop Self Storage is 1.8 times less risky than Advanced Health. The stock trades about -0.07 of its potential returns per unit of risk. The Advanced Health Intelligence is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  0.40  in Advanced Health Intelligence on May 12, 2025 and sell it today you would earn a total of  0.00  from holding Advanced Health Intelligence or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.92%
Values	Daily Returns

SmartStop Self Storage  vs.  Advanced Health Intelligence

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.

Advanced Health Inte

Risk-Adjusted Performance

Weakest

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

Pair Trading with SmartStop Self and Advanced Health

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

The idea behind SmartStop Self Storage and Advanced Health Intelligence 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.