Correlation Between Simon Property and Ardent Leisure
Can any of the company-specific risk be diversified away by investing in both Simon Property and Ardent Leisure 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 Ardent Leisure 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 Ardent Leisure Group, you can compare the effects of market volatilities on Simon Property and Ardent Leisure 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 Ardent Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Ardent Leisure.
Diversification Opportunities for Simon Property and Ardent Leisure
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Simon and Ardent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Ardent Leisure Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ardent Leisure Group 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 Ardent Leisure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ardent Leisure Group has no effect on the direction of Simon Property i.e., Simon Property and Ardent Leisure go up and down completely randomly.
Pair Corralation between Simon Property and Ardent Leisure
If you would invest 17,618 in Simon Property Group on September 13, 2024 and sell it today you would earn a total of 241.50 from holding Simon Property Group or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Simon Property Group vs. Ardent Leisure Group
Performance |
| Timeline |
| Simon Property Group |
| Ardent Leisure Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Simon Property and Ardent Leisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Ardent Leisure
The main advantage of trading using opposite Simon Property and Ardent Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Ardent Leisure 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 Ardent Leisure will offset losses from the drop in Ardent Leisure's long position.| Simon Property vs. Federal Realty Investment | Simon Property vs. Agree Realty | Simon Property vs. National Retail Properties | Simon Property vs. Kimco Realty |
| Ardent Leisure vs. Avis Budget Group | Ardent Leisure vs. U Haul Holding | Ardent Leisure vs. First Ship Lease | Ardent Leisure vs. Hertz Global Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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