Correlation Between Global Ship and SIMON
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By analyzing existing cross correlation between Global Ship Lease and SIMON PROPERTY GROUP, you can compare the effects of market volatilities on Global Ship 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 Global Ship with a short position of SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and SIMON.
Diversification Opportunities for Global Ship and SIMON
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and SIMON is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease 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 Global Ship 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 Global Ship Lease 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 Global Ship i.e., Global Ship and SIMON go up and down completely randomly.
Pair Corralation between Global Ship and SIMON
Assuming the 90 days trading horizon Global Ship Lease is expected to generate 0.56 times more return on investment than SIMON. However, Global Ship Lease is 1.8 times less risky than SIMON. It trades about 0.06 of its potential returns per unit of risk. SIMON PROPERTY GROUP is currently generating about -0.03 per unit of risk. If you would invest 2,617 in Global Ship Lease on September 5, 2024 and sell it today you would earn a total of 20.00 from holding Global Ship Lease or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Global Ship Lease vs. SIMON PROPERTY GROUP
Performance |
| Timeline |
| Global Ship Lease |
| SIMON PROPERTY GROUP |
Global Ship and SIMON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Ship and SIMON
The main advantage of trading using opposite Global Ship and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship 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.| Global Ship vs. Safe Bulkers | Global Ship vs. Diana Shipping | Global Ship vs. Costamare | Global Ship vs. Safe Bulkers |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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