Correlation Between Simon Property and II VI

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Simon Property and II VI 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 II VI 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 II VI Incorporated, you can compare the effects of market volatilities on Simon Property and II VI 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 II VI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and II VI.

Diversification Opportunities for Simon Property and II VI

0.51
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Simon and IIVIP is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and II VI Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on II VI 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 II VI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of II VI has no effect on the direction of Simon Property i.e., Simon Property and II VI go up and down completely randomly.

Pair Corralation between Simon Property and II VI

If you would invest  17,627  in Simon Property Group on September 15, 2024 and sell it today you would earn a total of  333.00  from holding Simon Property Group or generate 1.89% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy4.76%
ValuesDaily Returns

Simon Property Group  vs.  II VI Incorporated

 Performance 
       Timeline  
Simon Property Group 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Simon Property Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Simon Property may actually be approaching a critical reversion point that can send shares even higher in January 2025.
II VI 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days II VI Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, II VI is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Simon Property and II VI Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Simon Property and II VI

The main advantage of trading using opposite Simon Property and II VI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, II VI 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 II VI will offset losses from the drop in II VI's long position.
The idea behind Simon Property Group and II VI Incorporated pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

Other Complementary Tools

Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Global Correlations
Find global opportunities by holding instruments from different markets