Correlation Between SmartStop Self and Zillow Group

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

Diversification Opportunities for SmartStop Self and Zillow Group

0.7

Correlation Coefficient

SmartStop Self  Zillow Group

Poor diversification

The 3 months correlation between SmartStop and Zillow is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding SmartStop Self Storage and Zillow Group Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zillow Group Class 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 Zillow Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zillow Group Class has no effect on the direction of SmartStop Self i.e., SmartStop Self and Zillow Group go up and down completely randomly.

Pair Corralation between SmartStop Self and Zillow Group

Considering the 90-day investment horizon SmartStop Self Storage is expected to generate 0.62 times more return on investment than Zillow Group. However, SmartStop Self Storage is 1.61 times less risky than Zillow Group. It trades about -0.14 of its potential returns per unit of risk. Zillow Group Class is currently generating about -0.1 per unit of risk. If you would invest  3,830  in SmartStop Self Storage on September 16, 2025 and sell it today you would lose (518.57) from holding SmartStop Self Storage or give up 13.54% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

SmartStop Self Storage  vs.  Zillow Group Class

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 unsteady performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

Zillow Group Class

Risk-Adjusted Performance

Weakest

Over the last 90 days Zillow Group Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Etf's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the ETF investors.

Pair Trading with SmartStop Self and Zillow Group

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

The idea behind SmartStop Self Storage and Zillow Group Class 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.