Correlation Between Concentra Group and Simon Property
Can any of the company-specific risk be diversified away by investing in both Concentra Group 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 Concentra Group and Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concentra Group Holdings and Simon Property Group, you can compare the effects of market volatilities on Concentra Group 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 Concentra Group with a short position of Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concentra Group and Simon Property.
Diversification Opportunities for Concentra Group and Simon Property
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Concentra and Simon is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Concentra Group Holdings 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 Concentra Group 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 Concentra Group Holdings 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 Concentra Group i.e., Concentra Group and Simon Property go up and down completely randomly.
Pair Corralation between Concentra Group and Simon Property
Considering the 90-day investment horizon Concentra Group Holdings is expected to under-perform the Simon Property. In addition to that, Concentra Group is 1.39 times more volatile than Simon Property Group. It trades about -0.04 of its total potential returns per unit of risk. Simon Property Group is currently generating about 0.08 per unit of volatility. If you would invest 10,537 in Simon Property Group on September 13, 2024 and sell it today you would earn a total of 7,126 from holding Simon Property Group or generate 67.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 19.84% |
| Values | Daily Returns |
Concentra Group Holdings vs. Simon Property Group
Performance |
| Timeline |
| Concentra Group Holdings |
| Simon Property Group |
Concentra Group and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concentra Group and Simon Property
The main advantage of trading using opposite Concentra Group and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concentra Group 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.| Concentra Group vs. Simon Property Group | Concentra Group vs. Arhaus Inc | Concentra Group vs. Fast Retailing Co | Concentra Group vs. Tradeweb Markets |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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