Correlation Between Simon Property and Codexis
Can any of the company-specific risk be diversified away by investing in both Simon Property and Codexis 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 Codexis 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 Codexis, you can compare the effects of market volatilities on Simon Property and Codexis 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 Codexis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Codexis.
Diversification Opportunities for Simon Property and Codexis
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Simon and Codexis is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Codexis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codexis 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 Codexis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codexis has no effect on the direction of Simon Property i.e., Simon Property and Codexis go up and down completely randomly.
Pair Corralation between Simon Property and Codexis
Considering the 90-day investment horizon Simon Property Group is expected to generate 0.26 times more return on investment than Codexis. However, Simon Property Group is 3.78 times less risky than Codexis. It trades about 0.08 of its potential returns per unit of risk. Codexis is currently generating about 0.02 per unit of risk. If you would invest 10,723 in Simon Property Group on September 2, 2024 and sell it today you would earn a total of 7,637 from holding Simon Property Group or generate 71.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simon Property Group vs. Codexis
Performance |
| Timeline |
| Simon Property Group |
| Codexis |
Simon Property and Codexis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Codexis
The main advantage of trading using opposite Simon Property and Codexis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Codexis 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 Codexis will offset losses from the drop in Codexis' long position.| Simon Property vs. Federal Realty Investment | Simon Property vs. National Retail Properties | Simon Property vs. Kimco Realty |
| Codexis vs. Nuvation Bio | Codexis vs. Lyell Immunopharma | Codexis vs. Century Therapeutics | Codexis vs. Generation Bio Co |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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