Correlation Between SmartStop Self and Pinterest

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

Diversification Opportunities for SmartStop Self and Pinterest

0.73

Correlation Coefficient

SmartStop Self  Pinterest

Poor diversification

The 3 months correlation between SmartStop and Pinterest is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding SmartStop Self Storage and Pinterest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinterest 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 Pinterest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinterest has no effect on the direction of SmartStop Self i.e., SmartStop Self and Pinterest go up and down completely randomly.

Pair Corralation between SmartStop Self and Pinterest

Assuming the 90 days horizon SmartStop Self is expected to generate 12.1 times less return on investment than Pinterest. But when comparing it to its historical volatility, SmartStop Self Storage is 25.01 times less risky than Pinterest. It trades about 0.22 of its potential returns per unit of risk. Pinterest is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  3,143  in Pinterest on May 28, 2025 and sell it today you would earn a total of  418.00  from holding Pinterest or generate 13.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	70.97%
Values	Daily Returns

SmartStop Self Storage  vs.  Pinterest

SmartStop Self Storage

Risk-Adjusted Performance

Solid

Over the last 90 days SmartStop Self Storage has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, SmartStop Self is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pinterest

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Pinterest are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Pinterest unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SmartStop Self and Pinterest

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

The idea behind SmartStop Self Storage and Pinterest 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.

Check out your portfolio center.

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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.