Correlation Between Simon Property and RH
Can any of the company-specific risk be diversified away by investing in both Simon Property and RH 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 RH 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 RH, you can compare the effects of market volatilities on Simon Property and RH 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 RH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and RH.
Diversification Opportunities for Simon Property and RH
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Simon and RH is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and RH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RH 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 RH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RH has no effect on the direction of Simon Property i.e., Simon Property and RH go up and down completely randomly.
Pair Corralation between Simon Property and RH
Assuming the 90 days trading horizon Simon Property Group is expected to under-perform the RH. But the preferred stock apears to be less risky and, when comparing its historical volatility, Simon Property Group is 2.37 times less risky than RH. The preferred stock trades about -0.02 of its potential returns per unit of risk. The RH is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 39,510 in RH on November 3, 2024 and sell it today you would earn a total of 2,401 from holding RH or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simon Property Group vs. RH
Performance |
| Timeline |
| Simon Property Group |
| RH |
Simon Property and RH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and RH
The main advantage of trading using opposite Simon Property and RH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, RH 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 RH will offset losses from the drop in RH'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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |