Correlation Between Site Centers and Simon Property
Can any of the company-specific risk be diversified away by investing in both Site Centers 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 Site Centers and Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Site Centers Corp and Simon Property Group, you can compare the effects of market volatilities on Site Centers 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 Site Centers with a short position of Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Site Centers and Simon Property.
Diversification Opportunities for Site Centers and Simon Property
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Site and Simon is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Site Centers Corp 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 Site Centers 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 Site Centers Corp 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 Site Centers i.e., Site Centers and Simon Property go up and down completely randomly.
Pair Corralation between Site Centers and Simon Property
Given the investment horizon of 90 days Site Centers Corp is expected to generate 2.05 times more return on investment than Simon Property. However, Site Centers is 2.05 times more volatile than Simon Property Group. It trades about 0.06 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 824.00 in Site Centers Corp on August 28, 2024 and sell it today you would earn a total of 776.00 from holding Site Centers Corp or generate 94.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Site Centers Corp vs. Simon Property Group
Performance |
| Timeline |
| Site Centers Corp |
| Simon Property Group |
Site Centers and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Site Centers and Simon Property
The main advantage of trading using opposite Site Centers and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Site Centers 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.| Site Centers vs. Saul Centers | Site Centers vs. Acadia Realty Trust | Site Centers vs. Kite Realty Group | Site Centers vs. Retail Opportunity Investments |
| Simon Property vs. Kimco Realty | Simon Property vs. Saul Centers | Simon Property vs. Saul Centers | Simon Property vs. Urban Edge Properties |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |