Correlation Between Simon Property and Black Mammoth
Can any of the company-specific risk be diversified away by investing in both Simon Property and Black Mammoth 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 Simon Property and Black Mammoth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simon Property Group and Black Mammoth Metals, you can compare the effects of market volatilities on Simon Property and Black Mammoth 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 Simon Property with a short position of Black Mammoth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Black Mammoth.
Diversification Opportunities for Simon Property and Black Mammoth
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Simon and Black is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Black Mammoth Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Mammoth Metals and Simon 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 Simon Property Group are associated (or correlated) with Black Mammoth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Mammoth Metals has no effect on the direction of Simon Property i.e., Simon Property and Black Mammoth go up and down completely randomly.
Pair Corralation between Simon Property and Black Mammoth
Assuming the 90 days trading horizon Simon Property Group is expected to under-perform the Black Mammoth. But the preferred stock apears to be less risky and, when comparing its historical volatility, Simon Property Group is 5.1 times less risky than Black Mammoth. The preferred stock trades about -0.02 of its potential returns per unit of risk. The Black Mammoth Metals is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 68.00 in Black Mammoth Metals on November 3, 2024 and sell it today you would earn a total of 15.00 from holding Black Mammoth Metals or generate 22.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Simon Property Group vs. Black Mammoth Metals
Performance |
| Timeline |
| Simon Property Group |
| Black Mammoth Metals |
Simon Property and Black Mammoth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Black Mammoth
The main advantage of trading using opposite Simon Property and Black Mammoth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Black Mammoth 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 Black Mammoth will offset losses from the drop in Black Mammoth's long position.| Simon Property vs. Kimco Realty | Simon Property vs. Saul Centers | Simon Property vs. Saul Centers | Simon Property vs. Urban Edge Properties |
| Black Mammoth vs. Churchill Resources | Black Mammoth vs. Western Troy Capital | Black Mammoth vs. Kenorland Minerals | Black Mammoth vs. Beyond Minerals |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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