Correlation Between MI Homes and SIMON
Specify exactly 2 symbols:
By analyzing existing cross correlation between MI Homes and SIMON PROPERTY GROUP, you can compare the effects of market volatilities on MI Homes 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 MI Homes with a short position of SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of MI Homes and SIMON.
Diversification Opportunities for MI Homes and SIMON
Poor diversification
The 3 months correlation between MHO and SIMON is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding MI Homes 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 MI Homes 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 MI Homes 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 MI Homes i.e., MI Homes and SIMON go up and down completely randomly.
Pair Corralation between MI Homes and SIMON
Considering the 90-day investment horizon MI Homes is expected to generate 6.25 times more return on investment than SIMON. However, MI Homes is 6.25 times more volatile than SIMON PROPERTY GROUP. It trades about 0.11 of its potential returns per unit of risk. SIMON PROPERTY GROUP is currently generating about 0.04 per unit of risk. If you would invest 5,930 in MI Homes on September 1, 2024 and sell it today you would earn a total of 10,573 from holding MI Homes or generate 178.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.12% |
| Values | Daily Returns |
MI Homes vs. SIMON PROPERTY GROUP
Performance |
| Timeline |
| MI Homes |
| SIMON PROPERTY GROUP |
MI Homes and SIMON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MI Homes and SIMON
The main advantage of trading using opposite MI Homes and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MI Homes 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.| MI Homes vs. TRI Pointe Homes | MI Homes vs. Beazer Homes USA | MI Homes vs. Century Communities | MI Homes vs. Meritage |
| SIMON vs. Lion One Metals | SIMON vs. Omni Health | SIMON vs. BioNTech SE | SIMON vs. Highway Holdings Limited |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets |