Correlation Between NYSE Composite and SIMON
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By analyzing existing cross correlation between NYSE Composite and SIMON PPTY GROUP, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and SIMON.
Diversification Opportunities for NYSE Composite and SIMON
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and SIMON is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and SIMON PPTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PPTY GROUP and NYSE Composite 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 NYSE Composite 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 PPTY GROUP has no effect on the direction of NYSE Composite i.e., NYSE Composite and SIMON go up and down completely randomly.
Pair Corralation between NYSE Composite and SIMON
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.84 times more return on investment than SIMON. However, NYSE Composite is 1.84 times more volatile than SIMON PPTY GROUP. It trades about 0.23 of its potential returns per unit of risk. SIMON PPTY GROUP is currently generating about 0.17 per unit of risk. If you would invest 1,954,967 in NYSE Composite on August 29, 2024 and sell it today you would earn a total of 66,978 from holding NYSE Composite or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
NYSE Composite vs. SIMON PPTY GROUP
Performance |
| Timeline |
NYSE Composite and SIMON Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
SIMON PPTY GROUP
Pair trading matchups for SIMON
Pair Trading with NYSE Composite and SIMON
The main advantage of trading using opposite NYSE Composite and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Sphere Entertainment Co | NYSE Composite vs. Weibo Corp | NYSE Composite vs. BCE Inc | NYSE Composite vs. Pinterest |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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