Correlation Between Simon Property and Global Medical
Can any of the company-specific risk be diversified away by investing in both Simon Property and Global Medical 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 Global Medical 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 Global Medical REIT, you can compare the effects of market volatilities on Simon Property and Global Medical 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 Global Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Global Medical.
Diversification Opportunities for Simon Property and Global Medical
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Simon and Global is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Global Medical REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Medical REIT 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 Global Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Medical REIT has no effect on the direction of Simon Property i.e., Simon Property and Global Medical go up and down completely randomly.
Pair Corralation between Simon Property and Global Medical
Considering the 90-day investment horizon Simon Property Group is expected to generate 0.9 times more return on investment than Global Medical. However, Simon Property Group is 1.11 times less risky than Global Medical. It trades about 0.16 of its potential returns per unit of risk. Global Medical REIT is currently generating about -0.25 per unit of risk. If you would invest 17,382 in Simon Property Group on August 24, 2024 and sell it today you would earn a total of 732.00 from holding Simon Property Group or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simon Property Group vs. Global Medical REIT
Performance |
| Timeline |
| Simon Property Group |
| Global Medical REIT |
Simon Property and Global Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Global Medical
The main advantage of trading using opposite Simon Property and Global Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Global Medical 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 Global Medical will offset losses from the drop in Global Medical's long position.| Simon Property vs. Federal Realty Investment | Simon Property vs. Agree Realty | Simon Property vs. Tanger Factory Outlet | Simon Property vs. Netstreit Corp |
| Global Medical vs. Healthpeak Properties | Global Medical vs. Ventas Inc | Global Medical vs. National Health Investors | Global Medical vs. Sabra Healthcare REIT |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |