Correlation Between Old Republic and SIMON
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By analyzing existing cross correlation between Old Republic International and SIMON PPTY GROUP, you can compare the effects of market volatilities on Old Republic 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 Old Republic with a short position of SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Republic and SIMON.
Diversification Opportunities for Old Republic and SIMON
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Old and SIMON is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Old Republic International 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 Old Republic 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 Old Republic 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 PPTY GROUP has no effect on the direction of Old Republic i.e., Old Republic and SIMON go up and down completely randomly.
Pair Corralation between Old Republic and SIMON
Considering the 90-day investment horizon Old Republic International is expected to generate 3.49 times more return on investment than SIMON. However, Old Republic is 3.49 times more volatile than SIMON PPTY GROUP. It trades about 0.54 of its potential returns per unit of risk. SIMON PPTY GROUP is currently generating about 0.23 per unit of risk. If you would invest 3,465 in Old Republic International on September 3, 2024 and sell it today you would earn a total of 432.00 from holding Old Republic International or generate 12.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Old Republic International vs. SIMON PPTY GROUP
Performance |
| Timeline |
| Old Republic Interna |
| SIMON PPTY GROUP |
Old Republic and SIMON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Republic and SIMON
The main advantage of trading using opposite Old Republic and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Republic 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.| Old Republic vs. Axa Equitable Holdings | Old Republic vs. American International Group | Old Republic vs. Arch Capital Group | Old Republic vs. Sun Life Financial |
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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