Correlation Between Marriott International and SIMON
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By analyzing existing cross correlation between Marriott International and SIMON PROPERTY GROUP, you can compare the effects of market volatilities on Marriott International 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 Marriott International with a short position of SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marriott International and SIMON.
Diversification Opportunities for Marriott International and SIMON
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marriott and SIMON is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Marriott International 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 Marriott International 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 Marriott International 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 Marriott International i.e., Marriott International and SIMON go up and down completely randomly.
Pair Corralation between Marriott International and SIMON
Considering the 90-day investment horizon Marriott International is expected to generate 5.11 times more return on investment than SIMON. However, Marriott International is 5.11 times more volatile than SIMON PROPERTY GROUP. It trades about 0.26 of its potential returns per unit of risk. SIMON PROPERTY GROUP is currently generating about 0.0 per unit of risk. If you would invest 24,804 in Marriott International on August 29, 2024 and sell it today you would earn a total of 4,014 from holding Marriott International or generate 16.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.02% |
| Values | Daily Returns |
Marriott International vs. SIMON PROPERTY GROUP
Performance |
| Timeline |
| Marriott International |
| SIMON PROPERTY GROUP |
Marriott International and SIMON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marriott International and SIMON
The main advantage of trading using opposite Marriott International and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marriott International 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.| Marriott International vs. Hyatt Hotels | Marriott International vs. InterContinental Hotels Group | Marriott International vs. Choice Hotels International | Marriott International vs. Wyndham Hotels Resorts |
| SIMON vs. Cadence Design Systems | SIMON vs. MI Homes | SIMON vs. Pinterest | SIMON vs. Hudson Pacific Properties |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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