Correlation Between Safestore Holdings and London Security

Can any of the company-specific risk be diversified away by investing in both Safestore Holdings and London Security 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 Safestore Holdings and London Security into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Safestore Holdings Plc and London Security Plc, you can compare the effects of market volatilities on Safestore Holdings and London Security 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 Safestore Holdings with a short position of London Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safestore Holdings and London Security.

Diversification Opportunities for Safestore Holdings and London Security

0.0

Correlation Coefficient

Safestore Holdings  London Security

Pay attention - limited upside

The 3 months correlation between Safestore and London is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Safestore Holdings Plc and London Security Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on London Security Plc and Safestore Holdings 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 Safestore Holdings Plc are associated (or correlated) with London Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of London Security Plc has no effect on the direction of Safestore Holdings i.e., Safestore Holdings and London Security go up and down completely randomly.

Pair Corralation between Safestore Holdings and London Security

If you would invest (100.00) in Safestore Holdings Plc on April 20, 2025 and sell it today you would earn a total of  100.00  from holding Safestore Holdings Plc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Safestore Holdings Plc  vs.  London Security Plc

Safestore Holdings Plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Safestore Holdings Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Safestore Holdings is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

London Security Plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days London Security Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, London Security is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Safestore Holdings and London Security

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

The idea behind Safestore Holdings Plc and London Security Plc 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.