Correlation Between Simon Property and ATRenew
Can any of the company-specific risk be diversified away by investing in both Simon Property and ATRenew 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 ATRenew 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 ATRenew Inc DRC, you can compare the effects of market volatilities on Simon Property and ATRenew 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 ATRenew. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and ATRenew.
Diversification Opportunities for Simon Property and ATRenew
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Simon and ATRenew is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and ATRenew Inc DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRenew Inc DRC 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 ATRenew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRenew Inc DRC has no effect on the direction of Simon Property i.e., Simon Property and ATRenew go up and down completely randomly.
Pair Corralation between Simon Property and ATRenew
Assuming the 90 days trading horizon Simon Property is expected to generate 1.87 times less return on investment than ATRenew. But when comparing it to its historical volatility, Simon Property Group is 3.61 times less risky than ATRenew. It trades about 0.03 of its potential returns per unit of risk. ATRenew Inc DRC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 305.00 in ATRenew Inc DRC on November 2, 2024 and sell it today you would lose (35.50) from holding ATRenew Inc DRC or give up 11.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Simon Property Group vs. ATRenew Inc DRC
Performance |
| Timeline |
| Simon Property Group |
| ATRenew Inc DRC |
Simon Property and ATRenew Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and ATRenew
The main advantage of trading using opposite Simon Property and ATRenew positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, ATRenew 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 ATRenew will offset losses from the drop in ATRenew's long position.| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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