Correlation Between Simon Property and Inflection Point
Can any of the company-specific risk be diversified away by investing in both Simon Property and Inflection Point 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 Inflection Point 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 Inflection Point Acquisition, you can compare the effects of market volatilities on Simon Property and Inflection Point 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 Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Inflection Point.
Diversification Opportunities for Simon Property and Inflection Point
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Simon and Inflection is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq 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 Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of Simon Property i.e., Simon Property and Inflection Point go up and down completely randomly.
Pair Corralation between Simon Property and Inflection Point
Considering the 90-day investment horizon Simon Property is expected to generate 106.19 times less return on investment than Inflection Point. But when comparing it to its historical volatility, Simon Property Group is 6.36 times less risky than Inflection Point. It trades about 0.02 of its potential returns per unit of risk. Inflection Point Acquisition is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,086 in Inflection Point Acquisition on September 13, 2024 and sell it today you would earn a total of 404.00 from holding Inflection Point Acquisition or generate 37.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simon Property Group vs. Inflection Point Acquisition
Performance |
| Timeline |
| Simon Property Group |
| Inflection Point Acq |
Simon Property and Inflection Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Inflection Point
The main advantage of trading using opposite Simon Property and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Inflection Point 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 Inflection Point will offset losses from the drop in Inflection Point's long position.| Simon Property vs. Federal Realty Investment | Simon Property vs. Agree Realty | Simon Property vs. National Retail Properties | Simon Property vs. Kimco Realty |
| Inflection Point vs. Meiwu Technology Co | Inflection Point vs. Sea | Inflection Point vs. Pool Corporation | Inflection Point vs. Boston Properties |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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