Correlation Between Simon Property and Alexanders
Can any of the company-specific risk be diversified away by investing in both Simon Property and Alexanders 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 Alexanders 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 Alexanders, you can compare the effects of market volatilities on Simon Property and Alexanders 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 Alexanders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Alexanders.
Diversification Opportunities for Simon Property and Alexanders
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Simon and Alexanders is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Alexanders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexanders 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 Alexanders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexanders has no effect on the direction of Simon Property i.e., Simon Property and Alexanders go up and down completely randomly.
Pair Corralation between Simon Property and Alexanders
Considering the 90-day investment horizon Simon Property Group is expected to generate 0.78 times more return on investment than Alexanders. However, Simon Property Group is 1.28 times less risky than Alexanders. It trades about 0.22 of its potential returns per unit of risk. Alexanders is currently generating about -0.02 per unit of risk. If you would invest 17,252 in Simon Property Group on August 27, 2024 and sell it today you would earn a total of 862.00 from holding Simon Property Group or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simon Property Group vs. Alexanders
Performance |
| Timeline |
| Simon Property Group |
| Alexanders |
Simon Property and Alexanders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Alexanders
The main advantage of trading using opposite Simon Property and Alexanders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Alexanders 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 Alexanders will offset losses from the drop in Alexanders' long position.| Simon Property vs. Federal Realty Investment | Simon Property vs. Agree Realty | Simon Property vs. National Retail Properties | Simon Property vs. Kimco Realty |
| Alexanders vs. Saul Centers | Alexanders vs. Urban Edge Properties | Alexanders vs. Site Centers Corp | Alexanders vs. Kite Realty Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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