Correlation Between PT Bank and Simon Property
Can any of the company-specific risk be diversified away by investing in both PT Bank 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 PT Bank and Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Mandiri and Simon Property Group, you can compare the effects of market volatilities on PT Bank 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 PT Bank with a short position of Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Simon Property.
Diversification Opportunities for PT Bank and Simon Property
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PQ9 and Simon is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Mandiri 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 PT Bank 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 PT Bank Mandiri 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 PT Bank i.e., PT Bank and Simon Property go up and down completely randomly.
Pair Corralation between PT Bank and Simon Property
Assuming the 90 days horizon PT Bank is expected to generate 8.98 times less return on investment than Simon Property. In addition to that, PT Bank is 1.65 times more volatile than Simon Property Group. It trades about 0.01 of its total potential returns per unit of risk. Simon Property Group is currently generating about 0.2 per unit of volatility. If you would invest 16,025 in Simon Property Group on August 28, 2024 and sell it today you would earn a total of 1,185 from holding Simon Property Group or generate 7.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Mandiri vs. Simon Property Group
Performance |
| Timeline |
| PT Bank Mandiri |
| Simon Property Group |
PT Bank and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Simon Property
The main advantage of trading using opposite PT Bank and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank 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.| PT Bank vs. Digilife Technologies Limited | PT Bank vs. BANKINTER ADR 2007 | PT Bank vs. Regions Financial | PT Bank vs. Chiba Bank |
| Simon Property vs. HYATT HOTELS A | Simon Property vs. Summit Hotel Properties | Simon Property vs. Meli Hotels International | Simon Property vs. Gruppo Mutuionline SpA |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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