Correlation Between Premium Nickel and Simon Property
Can any of the company-specific risk be diversified away by investing in both Premium Nickel 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 Premium Nickel and Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premium Nickel Resources and Simon Property Group, you can compare the effects of market volatilities on Premium Nickel 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 Premium Nickel with a short position of Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premium Nickel and Simon Property.
Diversification Opportunities for Premium Nickel and Simon Property
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Premium and Simon is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Premium Nickel Resources 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 Premium Nickel 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 Premium Nickel Resources 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 Premium Nickel i.e., Premium Nickel and Simon Property go up and down completely randomly.
Pair Corralation between Premium Nickel and Simon Property
Assuming the 90 days horizon Premium Nickel Resources is expected to generate 3.38 times more return on investment than Simon Property. However, Premium Nickel is 3.38 times more volatile than Simon Property Group. It trades about 0.01 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 34.00 in Premium Nickel Resources on September 18, 2024 and sell it today you would earn a total of 0.00 from holding Premium Nickel Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Premium Nickel Resources vs. Simon Property Group
Performance |
| Timeline |
| Premium Nickel Resources |
| Simon Property Group |
Premium Nickel and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premium Nickel and Simon Property
The main advantage of trading using opposite Premium Nickel and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premium Nickel 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.| Premium Nickel vs. Simon Property Group | Premium Nickel vs. SunOpta | Premium Nickel vs. Kite Realty Group | Premium Nickel vs. Cardinal Health |
| Simon Property vs. Site Centers Corp | Simon Property vs. CBL Associates Properties | Simon Property vs. Acadia Realty Trust | Simon Property vs. Rithm Property Trust |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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