Correlation Between Simon Property and Fernhill Beverage
Can any of the company-specific risk be diversified away by investing in both Simon Property and Fernhill Beverage 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 Fernhill Beverage 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 Fernhill Beverage, you can compare the effects of market volatilities on Simon Property and Fernhill Beverage 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 Fernhill Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Fernhill Beverage.
Diversification Opportunities for Simon Property and Fernhill Beverage
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Simon and Fernhill is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Fernhill Beverage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fernhill Beverage 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 Fernhill Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fernhill Beverage has no effect on the direction of Simon Property i.e., Simon Property and Fernhill Beverage go up and down completely randomly.
Pair Corralation between Simon Property and Fernhill Beverage
If you would invest 11,508 in Simon Property Group on September 14, 2024 and sell it today you would earn a total of 6,350 from holding Simon Property Group or generate 55.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Simon Property Group vs. Fernhill Beverage
Performance |
| Timeline |
| Simon Property Group |
| Fernhill Beverage |
Simon Property and Fernhill Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Fernhill Beverage
The main advantage of trading using opposite Simon Property and Fernhill Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Fernhill Beverage 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 Fernhill Beverage will offset losses from the drop in Fernhill Beverage's long position.| Simon Property vs. Site Centers Corp | Simon Property vs. CBL Associates Properties | Simon Property vs. Urban Edge Properties | Simon Property vs. Acadia Realty Trust |
| Fernhill Beverage vs. National Beverage Corp | Fernhill Beverage vs. Celsius Holdings | Fernhill Beverage vs. Monster Beverage Corp | Fernhill Beverage vs. Coca Cola Femsa SAB |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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