Correlation Between Simon Property and Premium Nickel
Can any of the company-specific risk be diversified away by investing in both Simon Property and Premium Nickel 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 Premium Nickel 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 Premium Nickel Resources, you can compare the effects of market volatilities on Simon Property and Premium Nickel 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 Premium Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Premium Nickel.
Diversification Opportunities for Simon Property and Premium Nickel
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Simon and Premium is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Premium Nickel Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premium Nickel Resources 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 Premium Nickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premium Nickel Resources has no effect on the direction of Simon Property i.e., Simon Property and Premium Nickel go up and down completely randomly.
Pair Corralation between Simon Property and Premium Nickel
Considering the 90-day investment horizon Simon Property is expected to generate 1.22 times less return on investment than Premium Nickel. But when comparing it to its historical volatility, Simon Property Group is 3.29 times less risky than Premium Nickel. It trades about 0.04 of its potential returns per unit of risk. Premium Nickel Resources is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 34.00 in Premium Nickel Resources on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Premium Nickel Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simon Property Group vs. Premium Nickel Resources
Performance |
| Timeline |
| Simon Property Group |
| Premium Nickel Resources |
Simon Property and Premium Nickel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Premium Nickel
The main advantage of trading using opposite Simon Property and Premium Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Premium Nickel 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 Premium Nickel will offset losses from the drop in Premium Nickel's long position.| Simon Property vs. Site Centers Corp | Simon Property vs. CBL Associates Properties | Simon Property vs. Rithm Property Trust | Simon Property vs. Retail Opportunity Investments |
| Premium Nickel vs. Playtika Holding Corp | Premium Nickel vs. PennantPark Investment | Premium Nickel vs. Comstock Holding Companies | Premium Nickel vs. RCS MediaGroup SpA |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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