Correlation Between Simon Property and Klpierre
Can any of the company-specific risk be diversified away by investing in both Simon Property and Klpierre 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 Klpierre 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 Klpierre SA, you can compare the effects of market volatilities on Simon Property and Klpierre 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 Klpierre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Klpierre.
Diversification Opportunities for Simon Property and Klpierre
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Simon and Klpierre is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Klpierre SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klpierre SA 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 Klpierre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klpierre SA has no effect on the direction of Simon Property i.e., Simon Property and Klpierre go up and down completely randomly.
Pair Corralation between Simon Property and Klpierre
Considering the 90-day investment horizon Simon Property Group is expected to generate 0.82 times more return on investment than Klpierre. However, Simon Property Group is 1.23 times less risky than Klpierre. It trades about 0.06 of its potential returns per unit of risk. Klpierre SA is currently generating about -0.11 per unit of risk. If you would invest 16,857 in Simon Property Group on October 25, 2024 and sell it today you would earn a total of 629.00 from holding Simon Property Group or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
Simon Property Group vs. Klpierre SA
Performance |
| Timeline |
| Simon Property Group |
| Klpierre SA |
Simon Property and Klpierre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Klpierre
The main advantage of trading using opposite Simon Property and Klpierre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Klpierre 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 Klpierre will offset losses from the drop in Klpierre'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 |
| Klpierre vs. Cedar Realty Trust | Klpierre vs. Wheeler Real Estate | Klpierre vs. Macerich Company | Klpierre vs. Simon Property Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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