Correlation Between Simon Property and Lewis Clark
Can any of the company-specific risk be diversified away by investing in both Simon Property and Lewis Clark 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 Lewis Clark 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 Lewis Clark Bancorp, you can compare the effects of market volatilities on Simon Property and Lewis Clark 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 Lewis Clark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Lewis Clark.
Diversification Opportunities for Simon Property and Lewis Clark
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Simon and Lewis is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Lewis Clark Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lewis Clark Bancorp 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 Lewis Clark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lewis Clark Bancorp has no effect on the direction of Simon Property i.e., Simon Property and Lewis Clark go up and down completely randomly.
Pair Corralation between Simon Property and Lewis Clark
Considering the 90-day investment horizon Simon Property is expected to generate 1.67 times less return on investment than Lewis Clark. In addition to that, Simon Property is 1.16 times more volatile than Lewis Clark Bancorp. It trades about 0.12 of its total potential returns per unit of risk. Lewis Clark Bancorp is currently generating about 0.24 per unit of volatility. If you would invest 2,150 in Lewis Clark Bancorp on September 3, 2024 and sell it today you would earn a total of 850.00 from holding Lewis Clark Bancorp or generate 39.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simon Property Group vs. Lewis Clark Bancorp
Performance |
| Timeline |
| Simon Property Group |
| Lewis Clark Bancorp |
Simon Property and Lewis Clark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Lewis Clark
The main advantage of trading using opposite Simon Property and Lewis Clark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Lewis Clark 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 Lewis Clark will offset losses from the drop in Lewis Clark'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 |
| Lewis Clark vs. First Hawaiian | Lewis Clark vs. Central Pacific Financial | Lewis Clark vs. Territorial Bancorp | Lewis Clark vs. Comerica |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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