Correlation Between Simon Property and GEROVA Financial
Can any of the company-specific risk be diversified away by investing in both Simon Property and GEROVA Financial 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 GEROVA Financial 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 GEROVA Financial Group, you can compare the effects of market volatilities on Simon Property and GEROVA Financial 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 GEROVA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and GEROVA Financial.
Diversification Opportunities for Simon Property and GEROVA Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Simon and GEROVA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and GEROVA Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEROVA Financial 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 GEROVA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEROVA Financial has no effect on the direction of Simon Property i.e., Simon Property and GEROVA Financial go up and down completely randomly.
Pair Corralation between Simon Property and GEROVA Financial
If you would invest 12,639 in Simon Property Group on September 2, 2024 and sell it today you would earn a total of 5,721 from holding Simon Property Group or generate 45.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Simon Property Group vs. GEROVA Financial Group
Performance |
| Timeline |
| Simon Property Group |
| GEROVA Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Simon Property and GEROVA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and GEROVA Financial
The main advantage of trading using opposite Simon Property and GEROVA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, GEROVA Financial 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 GEROVA Financial will offset losses from the drop in GEROVA Financial's long position.| Simon Property vs. Federal Realty Investment | Simon Property vs. National Retail Properties | Simon Property vs. Kimco Realty |
| GEROVA Financial vs. Sonida Senior Living | GEROVA Financial vs. The Joint Corp | GEROVA Financial vs. Amgen Inc | GEROVA Financial vs. Catalent |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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