Correlation Between Simon Property and Genesis Growth
Can any of the company-specific risk be diversified away by investing in both Simon Property and Genesis Growth 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 Genesis Growth 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 Genesis Growth Tech, you can compare the effects of market volatilities on Simon Property and Genesis Growth 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 Genesis Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Genesis Growth.
Diversification Opportunities for Simon Property and Genesis Growth
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Simon and Genesis is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Genesis Growth Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Growth Tech 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 Genesis Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Growth Tech has no effect on the direction of Simon Property i.e., Simon Property and Genesis Growth go up and down completely randomly.
Pair Corralation between Simon Property and Genesis Growth
If you would invest 17,618 in Simon Property Group on September 13, 2024 and sell it today you would earn a total of 102.00 from holding Simon Property Group or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Simon Property Group vs. Genesis Growth Tech
Performance |
| Timeline |
| Simon Property Group |
| Genesis Growth Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Simon Property and Genesis Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Genesis Growth
The main advantage of trading using opposite Simon Property and Genesis Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Genesis Growth 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 Genesis Growth will offset losses from the drop in Genesis Growth'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 |
| Genesis Growth vs. Kandi Technologies Group | Genesis Growth vs. Weibo Corp | Genesis Growth vs. NETGEAR | Genesis Growth vs. Emerson Electric |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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