Correlation Between Simon Property and Concentra Group
Can any of the company-specific risk be diversified away by investing in both Simon Property and Concentra Group 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 Concentra Group 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 Concentra Group Holdings, you can compare the effects of market volatilities on Simon Property and Concentra Group 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 Concentra Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Concentra Group.
Diversification Opportunities for Simon Property and Concentra Group
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Simon and Concentra is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Concentra Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentra Group Holdings 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 Concentra Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentra Group Holdings has no effect on the direction of Simon Property i.e., Simon Property and Concentra Group go up and down completely randomly.
Pair Corralation between Simon Property and Concentra Group
Considering the 90-day investment horizon Simon Property Group is expected to generate 0.72 times more return on investment than Concentra Group. However, Simon Property Group is 1.39 times less risky than Concentra Group. It trades about 0.08 of its potential returns per unit of risk. Concentra Group Holdings is currently generating about -0.04 per unit of risk. If you would invest 10,537 in Simon Property Group on September 13, 2024 and sell it today you would earn a total of 7,126 from holding Simon Property Group or generate 67.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 19.84% |
| Values | Daily Returns |
Simon Property Group vs. Concentra Group Holdings
Performance |
| Timeline |
| Simon Property Group |
| Concentra Group Holdings |
Simon Property and Concentra Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Concentra Group
The main advantage of trading using opposite Simon Property and Concentra Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Concentra Group 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 Concentra Group will offset losses from the drop in Concentra Group'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 |
| Concentra Group vs. Simon Property Group | Concentra Group vs. Arhaus Inc | Concentra Group vs. Fast Retailing Co | Concentra Group vs. Tradeweb Markets |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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