Correlation Between Rithm Property and Simon Property
Can any of the company-specific risk be diversified away by investing in both Rithm Property 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 Rithm Property and Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rithm Property Trust and Simon Property Group, you can compare the effects of market volatilities on Rithm Property 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 Rithm Property with a short position of Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rithm Property and Simon Property.
Diversification Opportunities for Rithm Property and Simon Property
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Rithm and Simon is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Rithm Property Trust 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 Rithm Property 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 Rithm Property Trust 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 Rithm Property i.e., Rithm Property and Simon Property go up and down completely randomly.
Pair Corralation between Rithm Property and Simon Property
Considering the 90-day investment horizon Rithm Property Trust is expected to under-perform the Simon Property. In addition to that, Rithm Property is 1.6 times more volatile than Simon Property Group. It trades about -0.16 of its total potential returns per unit of risk. Simon Property Group is currently generating about 0.04 per unit of volatility. If you would invest 17,878 in Simon Property Group on September 18, 2024 and sell it today you would earn a total of 118.00 from holding Simon Property Group or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rithm Property Trust vs. Simon Property Group
Performance |
| Timeline |
| Rithm Property Trust |
| Simon Property Group |
Rithm Property and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rithm Property and Simon Property
The main advantage of trading using opposite Rithm Property and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rithm Property 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.| Rithm Property vs. Urban Edge Properties | Rithm Property vs. Kite Realty Group | Rithm Property vs. Retail Opportunity Investments | Rithm Property vs. Inventrust Properties Corp |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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