Correlation Between Simon Property and Creative Media
Can any of the company-specific risk be diversified away by investing in both Simon Property and Creative Media 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 Creative Media 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 Creative Media Community, you can compare the effects of market volatilities on Simon Property and Creative Media 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 Creative Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Creative Media.
Diversification Opportunities for Simon Property and Creative Media
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Simon and Creative is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Creative Media Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creative Media Community 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 Creative Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creative Media Community has no effect on the direction of Simon Property i.e., Simon Property and Creative Media go up and down completely randomly.
Pair Corralation between Simon Property and Creative Media
Considering the 90-day investment horizon Simon Property Group is expected to generate 0.32 times more return on investment than Creative Media. However, Simon Property Group is 3.12 times less risky than Creative Media. It trades about 0.08 of its potential returns per unit of risk. Creative Media Community is currently generating about -0.1 per unit of risk. If you would invest 10,554 in Simon Property Group on August 30, 2024 and sell it today you would earn a total of 7,821 from holding Simon Property Group or generate 74.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Simon Property Group vs. Creative Media Community
Performance |
| Timeline |
| Simon Property Group |
| Creative Media Community |
Simon Property and Creative Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Creative Media
The main advantage of trading using opposite Simon Property and Creative Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Creative Media 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 Creative Media will offset losses from the drop in Creative Media'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 |
| Creative Media vs. Office Properties Income | Creative Media vs. SL Green Realty | Creative Media vs. Highwoods Properties | Creative Media vs. Equity Commonwealth |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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