Correlation Between CBL Associates and Simon Property
Can any of the company-specific risk be diversified away by investing in both CBL Associates 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 CBL Associates and Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBL Associates Properties and Simon Property Group, you can compare the effects of market volatilities on CBL Associates 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 CBL Associates with a short position of Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL Associates and Simon Property.
Diversification Opportunities for CBL Associates and Simon Property
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBL and Simon is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding CBL Associates Properties 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 CBL Associates 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 CBL Associates Properties 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 CBL Associates i.e., CBL Associates and Simon Property go up and down completely randomly.
Pair Corralation between CBL Associates and Simon Property
Considering the 90-day investment horizon CBL Associates Properties is expected to generate 2.36 times more return on investment than Simon Property. However, CBL Associates is 2.36 times more volatile than Simon Property Group. It trades about 0.63 of its potential returns per unit of risk. Simon Property Group is currently generating about -0.38 per unit of risk. If you would invest 2,592 in CBL Associates Properties on September 2, 2024 and sell it today you would earn a total of 498.00 from holding CBL Associates Properties or generate 19.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBL Associates Properties vs. Simon Property Group
Performance |
| Timeline |
| CBL Associates Properties |
| Simon Property Group |
CBL Associates and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBL Associates and Simon Property
The main advantage of trading using opposite CBL Associates and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBL Associates 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.| CBL Associates vs. Kite Realty Group | CBL Associates vs. Site Centers Corp | CBL Associates vs. Urban Edge Properties | CBL Associates vs. Acadia Realty Trust |
| Simon Property vs. Site Centers Corp | Simon Property vs. Urban Edge Properties | Simon Property vs. Retail Opportunity Investments | Simon Property vs. Brixmor Property |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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