Correlation Between Agree Realty and Simon Property
Can any of the company-specific risk be diversified away by investing in both Agree Realty and Simon Property 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 Agree Realty and Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agree Realty and Simon Property Group, you can compare the effects of market volatilities on Agree Realty and Simon Property 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 Agree Realty with a short position of Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agree Realty and Simon Property.
Diversification Opportunities for Agree Realty and Simon Property
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agree and Simon is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Agree Realty and Simon Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simon Property Group and Agree Realty 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 Agree Realty are associated (or correlated) with Simon Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simon Property Group has no effect on the direction of Agree Realty i.e., Agree Realty and Simon Property go up and down completely randomly.
Pair Corralation between Agree Realty and Simon Property
Considering the 90-day investment horizon Agree Realty is expected to generate 2.84 times less return on investment than Simon Property. But when comparing it to its historical volatility, Agree Realty is 1.28 times less risky than Simon Property. It trades about 0.04 of its potential returns per unit of risk. Simon Property Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 10,625 in Simon Property Group on August 23, 2024 and sell it today you would earn a total of 7,555 from holding Simon Property Group or generate 71.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agree Realty vs. Simon Property Group
Performance |
| Timeline |
| Agree Realty |
| Simon Property Group |
Agree Realty and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agree Realty and Simon Property
The main advantage of trading using opposite Agree Realty and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agree Realty position performs unexpectedly, Simon Property 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 Simon Property will offset losses from the drop in Simon Property's long position.| Agree Realty vs. Federal Realty Investment | Agree Realty vs. Regency Centers | Agree Realty vs. Netstreit Corp | Agree Realty vs. Kimco Realty |
| Simon Property vs. Federal Realty Investment | Simon Property vs. Agree Realty | Simon Property vs. National Retail Properties | Simon Property vs. Kimco Realty |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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