Correlation Between DAX Index and Simon Property
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By analyzing existing cross correlation between DAX Index and Simon Property Group, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Simon Property.
Diversification Opportunities for DAX Index and Simon Property
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DAX and Simon is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index 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 DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and Simon Property go up and down completely randomly.
Pair Corralation between DAX Index and Simon Property
Assuming the 90 days trading horizon DAX Index is expected to under-perform the Simon Property. But the index apears to be less risky and, when comparing its historical volatility, DAX Index is 1.74 times less risky than Simon Property. The index trades about -0.03 of its potential returns per unit of risk. The Simon Property Group is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 16,000 in Simon Property Group on August 25, 2024 and sell it today you would earn a total of 1,140 from holding Simon Property Group or generate 7.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Simon Property Group
Performance |
| Timeline |
DAX Index and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Simon Property Group
Pair trading matchups for Simon Property
Pair Trading with DAX Index and Simon Property
The main advantage of trading using opposite DAX Index and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. Salesforce | DAX Index vs. YATRA ONLINE DL 0001 | DAX Index vs. Ameriprise Financial | DAX Index vs. Mizuho Financial Group |
| Simon Property vs. AOI Electronics Co | Simon Property vs. UMC Electronics Co | Simon Property vs. METHODE ELECTRONICS | Simon Property vs. ARROW ELECTRONICS |
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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