Correlation Between Celyad SA and Shurgard Self

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

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

Diversification Opportunities for Celyad SA and Shurgard Self

-0.69

Correlation Coefficient

Celyad SA  Shurgard Self

Excellent diversification

The 3 months correlation between Celyad and Shurgard is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Celyad SA and Shurgard Self Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shurgard Self Storage and Celyad SA 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 Celyad SA are associated (or correlated) with Shurgard Self. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shurgard Self Storage has no effect on the direction of Celyad SA i.e., Celyad SA and Shurgard Self go up and down completely randomly.

Pair Corralation between Celyad SA and Shurgard Self

Assuming the 90 days trading horizon Celyad SA is expected to generate 4.0 times more return on investment than Shurgard Self. However, Celyad SA is 4.0 times more volatile than Shurgard Self Storage. It trades about 0.07 of its potential returns per unit of risk. Shurgard Self Storage is currently generating about -0.26 per unit of risk. If you would invest  65.00  in Celyad SA on September 22, 2024 and sell it today you would earn a total of  4.00  from holding Celyad SA or generate 6.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.65%
Values	Daily Returns

Celyad SA  vs.  Shurgard Self Storage

Celyad SA

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Celyad SA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Celyad SA reported solid returns over the last few months and may actually be approaching a breakup point.

Shurgard Self Storage

Risk-Adjusted Performance

0 of 100

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 weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Celyad SA and Shurgard Self

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

The idea behind Celyad SA and Shurgard Self Storage 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.