Correlation Between Empire State and SIMON
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By analyzing existing cross correlation between Empire State Realty and SIMON PROPERTY GROUP, you can compare the effects of market volatilities on Empire State 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 Empire State with a short position of SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empire State and SIMON.
Diversification Opportunities for Empire State and SIMON
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Empire and SIMON is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Empire State 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 Empire State 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 Empire State Realty 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 PROPERTY GROUP has no effect on the direction of Empire State i.e., Empire State and SIMON go up and down completely randomly.
Pair Corralation between Empire State and SIMON
Given the investment horizon of 90 days Empire State Realty is expected to generate 1.18 times more return on investment than SIMON. However, Empire State is 1.18 times more volatile than SIMON PROPERTY GROUP. It trades about 0.15 of its potential returns per unit of risk. SIMON PROPERTY GROUP is currently generating about 0.12 per unit of risk. If you would invest 1,082 in Empire State Realty on August 29, 2024 and sell it today you would earn a total of 43.00 from holding Empire State Realty or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Empire State Realty vs. SIMON PROPERTY GROUP
Performance |
| Timeline |
| Empire State Realty |
| SIMON PROPERTY GROUP |
Empire State and SIMON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empire State and SIMON
The main advantage of trading using opposite Empire State and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empire State 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.| Empire State vs. Paramount Group | Empire State vs. Hudson Pacific Properties | Empire State vs. Equity Commonwealth | Empire State vs. Douglas Emmett |
| SIMON vs. Eastern Co | SIMON vs. Stepan Company | SIMON vs. Lincoln Electric Holdings | SIMON vs. Procter Gamble |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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