Correlation Between Shurgard Self and Celyad SA

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

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

Diversification Opportunities for Shurgard Self and Celyad SA

0.5

Correlation Coefficient

Shurgard Self  Celyad SA

Very weak diversification

The 3 months correlation between Shurgard and Celyad is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Shurgard Self Storage and Celyad SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celyad SA and Shurgard 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 Shurgard Self Storage are associated (or correlated) with Celyad SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celyad SA has no effect on the direction of Shurgard Self i.e., Shurgard Self and Celyad SA go up and down completely randomly.

Pair Corralation between Shurgard Self and Celyad SA

Assuming the 90 days trading horizon Shurgard Self Storage is expected to under-perform the Celyad SA. But the stock apears to be less risky and, when comparing its historical volatility, Shurgard Self Storage is 7.94 times less risky than Celyad SA. The stock trades about -0.13 of its potential returns per unit of risk. The Celyad SA is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  79.00  in Celyad SA on December 4, 2024 and sell it today you would lose (27.00) from holding Celyad SA or give up 34.18% of portfolio value over 90 days.

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

Shurgard Self Storage  vs.  Celyad SA

Shurgard Self Storage

Risk-Adjusted Performance

Very Weak

Over the last 90 days Shurgard Self Storage has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Celyad SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Celyad SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Shurgard Self and Celyad SA

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

The idea behind Shurgard Self Storage and Celyad SA 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.