Correlation Between Extra Space and SmartStop Self
Can any of the company-specific risk be diversified away by investing in both Extra Space and SmartStop 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 Extra Space and SmartStop Self into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Extra Space Storage and SmartStop Self Storage, you can compare the effects of market volatilities on Extra Space and SmartStop 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 Extra Space with a short position of SmartStop Self. Check out your portfolio center. Please also check ongoing floating volatility patterns of Extra Space and SmartStop Self.
Diversification Opportunities for Extra Space and SmartStop Self
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Extra and SmartStop is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Extra Space Storage and SmartStop Self Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartStop Self Storage and Extra Space 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 Extra Space Storage are associated (or correlated) with SmartStop Self. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartStop Self Storage has no effect on the direction of Extra Space i.e., Extra Space and SmartStop Self go up and down completely randomly.
Pair Corralation between Extra Space and SmartStop Self
Considering the 90-day investment horizon Extra Space Storage is expected to under-perform the SmartStop Self. In addition to that, Extra Space is 1.22 times more volatile than SmartStop Self Storage. It trades about -0.21 of its total potential returns per unit of risk. SmartStop Self Storage is currently generating about -0.14 per unit of volatility. If you would invest 3,565 in SmartStop Self Storage on August 9, 2025 and sell it today you would lose (152.00) from holding SmartStop Self Storage or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Extra Space Storage vs. SmartStop Self Storage
Performance |
| Timeline |
| Extra Space Storage |
| SmartStop Self Storage |
Extra Space and SmartStop Self Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Extra Space and SmartStop Self
The main advantage of trading using opposite Extra Space and SmartStop Self positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Extra Space position performs unexpectedly, SmartStop 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 SmartStop Self will offset losses from the drop in SmartStop Self's long position.| Extra Space vs. VICI Properties | Extra Space vs. Iron Mountain Incorporated | Extra Space vs. Ventas Inc | Extra Space vs. AvalonBay Communities |
| SmartStop Self vs. Sachem Capital Corp | SmartStop Self vs. Diversified Healthcare Trust | SmartStop Self vs. Prudential Global Real | SmartStop Self vs. T Rowe Price |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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