Correlation Between Simon Property and Kansai Electric
Can any of the company-specific risk be diversified away by investing in both Simon Property and Kansai Electric 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 Kansai Electric 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 The Kansai Electric, you can compare the effects of market volatilities on Simon Property and Kansai Electric 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 Kansai Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Kansai Electric.
Diversification Opportunities for Simon Property and Kansai Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Simon and Kansai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and The Kansai Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kansai Electric 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 Kansai Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kansai Electric has no effect on the direction of Simon Property i.e., Simon Property and Kansai Electric go up and down completely randomly.
Pair Corralation between Simon Property and Kansai Electric
Considering the 90-day investment horizon Simon Property Group is expected to generate 0.65 times more return on investment than Kansai Electric. However, Simon Property Group is 1.55 times less risky than Kansai Electric. It trades about 0.11 of its potential returns per unit of risk. The Kansai Electric is currently generating about 0.04 per unit of risk. If you would invest 12,786 in Simon Property Group on September 3, 2024 and sell it today you would earn a total of 5,351 from holding Simon Property Group or generate 41.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 46.56% |
| Values | Daily Returns |
Simon Property Group vs. The Kansai Electric
Performance |
| Timeline |
| Simon Property Group |
| Kansai Electric |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Simon Property and Kansai Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Kansai Electric
The main advantage of trading using opposite Simon Property and Kansai Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Kansai Electric 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 Kansai Electric will offset losses from the drop in Kansai Electric'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 |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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