Correlation Between NH Foods and Simon Property
Can any of the company-specific risk be diversified away by investing in both NH Foods and Simon Property at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining NH Foods and Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH Foods Ltd and Simon Property Group, you can compare the effects of market volatilities on NH Foods 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 NH Foods with a short position of Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Foods and Simon Property.
Diversification Opportunities for NH Foods and Simon Property
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NIPMY and Simon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NH Foods Ltd 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 NH Foods 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 NH Foods Ltd 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 NH Foods i.e., NH Foods and Simon Property go up and down completely randomly.
Pair Corralation between NH Foods and Simon Property
If you would invest 16,912 in Simon Property Group on September 1, 2024 and sell it today you would earn a total of 1,448 from holding Simon Property Group or generate 8.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Foods Ltd vs. Simon Property Group
Performance |
| Timeline |
| NH Foods |
| Simon Property Group |
NH Foods and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Foods and Simon Property
The main advantage of trading using opposite NH Foods and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Foods 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.| NH Foods vs. The A2 Milk | NH Foods vs. Altavoz Entertainment | NH Foods vs. Artisan Consumer Goods | NH Foods vs. General Mills |
| Simon Property vs. Federal Realty Investment | Simon Property vs. National Retail Properties | Simon Property vs. Kimco Realty |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |