Correlation Between SmartStop Self and Radcom

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

Diversification Opportunities for SmartStop Self and Radcom

0.56

Correlation Coefficient

SmartStop Self  Radcom

Very weak diversification

The 3 months correlation between SmartStop and Radcom is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SmartStop Self Storage and Radcom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radcom 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 Radcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radcom has no effect on the direction of SmartStop Self i.e., SmartStop Self and Radcom go up and down completely randomly.

Pair Corralation between SmartStop Self and Radcom

Assuming the 90 days horizon SmartStop Self is expected to generate 12.95 times less return on investment than Radcom. But when comparing it to its historical volatility, SmartStop Self Storage is 40.54 times less risky than Radcom. It trades about 0.18 of its potential returns per unit of risk. Radcom is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,205  in Radcom on May 6, 2025 and sell it today you would earn a total of  104.00  from holding Radcom or generate 8.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.77%
Values	Daily Returns

SmartStop Self Storage  vs.  Radcom

SmartStop Self Storage

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SmartStop Self Storage are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. 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.

Radcom

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Radcom are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Radcom may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with SmartStop Self and Radcom

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

The idea behind SmartStop Self Storage and Radcom 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.