Correlation Between Simon Property and Medical Properties
Can any of the company-specific risk be diversified away by investing in both Simon Property and Medical Properties 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 Medical Properties 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 Medical Properties Trust, you can compare the effects of market volatilities on Simon Property and Medical Properties 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 Medical Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Medical Properties.
Diversification Opportunities for Simon Property and Medical Properties
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Simon and Medical is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Medical Properties Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Properties Trust 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 Medical Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medical Properties Trust has no effect on the direction of Simon Property i.e., Simon Property and Medical Properties go up and down completely randomly.
Pair Corralation between Simon Property and Medical Properties
Considering the 90-day investment horizon Simon Property Group is expected to generate 0.34 times more return on investment than Medical Properties. However, Simon Property Group is 2.91 times less risky than Medical Properties. It trades about 0.27 of its potential returns per unit of risk. Medical Properties Trust is currently generating about -0.08 per unit of risk. If you would invest 17,198 in Simon Property Group on August 30, 2024 and sell it today you would earn a total of 1,148 from holding Simon Property Group or generate 6.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Simon Property Group vs. Medical Properties Trust
Performance |
| Timeline |
| Simon Property Group |
| Medical Properties Trust |
Simon Property and Medical Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Medical Properties
The main advantage of trading using opposite Simon Property and Medical Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Medical Properties 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 Medical Properties will offset losses from the drop in Medical Properties' long position.| Simon Property vs. Saul Centers | Simon Property vs. Site Centers Corp | Simon Property vs. Kite Realty Group | Simon Property vs. Acadia Realty Trust |
| Medical Properties vs. Sabra Healthcare REIT | Medical Properties vs. LTC Properties | Medical Properties vs. Healthpeak Properties | Medical Properties vs. National Health Investors |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world |