Correlation Between Coupang LLC and Simon Property
Can any of the company-specific risk be diversified away by investing in both Coupang LLC 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 Coupang LLC and Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coupang LLC and Simon Property Group, you can compare the effects of market volatilities on Coupang LLC 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 Coupang LLC with a short position of Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coupang LLC and Simon Property.
Diversification Opportunities for Coupang LLC and Simon Property
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coupang and Simon is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC 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 Coupang LLC 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 Coupang LLC 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 Coupang LLC i.e., Coupang LLC and Simon Property go up and down completely randomly.
Pair Corralation between Coupang LLC and Simon Property
Given the investment horizon of 90 days Coupang LLC is expected to generate 1.59 times less return on investment than Simon Property. In addition to that, Coupang LLC is 1.71 times more volatile than Simon Property Group. It trades about 0.05 of its total potential returns per unit of risk. Simon Property Group is currently generating about 0.14 per unit of volatility. If you would invest 14,748 in Simon Property Group on August 29, 2024 and sell it today you would earn a total of 3,627 from holding Simon Property Group or generate 24.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coupang LLC vs. Simon Property Group
Performance |
| Timeline |
| Coupang LLC |
| Simon Property Group |
Coupang LLC and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coupang LLC and Simon Property
The main advantage of trading using opposite Coupang LLC and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coupang LLC 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.| Coupang LLC vs. MercadoLibre | Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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