Correlation Between Black Hills and SIMON
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By analyzing existing cross correlation between Black Hills and SIMON PPTY GROUP, you can compare the effects of market volatilities on Black Hills and SIMON 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 Black Hills with a short position of SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Hills and SIMON.
Diversification Opportunities for Black Hills and SIMON
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Black and SIMON is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Black Hills and SIMON PPTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PPTY GROUP and Black Hills 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 Black Hills are associated (or correlated) with SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PPTY GROUP has no effect on the direction of Black Hills i.e., Black Hills and SIMON go up and down completely randomly.
Pair Corralation between Black Hills and SIMON
Considering the 90-day investment horizon Black Hills is expected to generate 1.07 times more return on investment than SIMON. However, Black Hills is 1.07 times more volatile than SIMON PPTY GROUP. It trades about 0.14 of its potential returns per unit of risk. SIMON PPTY GROUP is currently generating about -0.03 per unit of risk. If you would invest 5,351 in Black Hills on September 3, 2024 and sell it today you would earn a total of 1,056 from holding Black Hills or generate 19.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.6% |
| Values | Daily Returns |
Black Hills vs. SIMON PPTY GROUP
Performance |
| Timeline |
| Black Hills |
| SIMON PPTY GROUP |
Black Hills and SIMON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Hills and SIMON
The main advantage of trading using opposite Black Hills and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Hills position performs unexpectedly, SIMON 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 will offset losses from the drop in SIMON's long position.| Black Hills vs. NorthWestern | Black Hills vs. Avista | Black Hills vs. Otter Tail | Black Hills vs. Companhia Paranaense de |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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