Correlation Between Simon Property and Pennsylvania Real
Can any of the company-specific risk be diversified away by investing in both Simon Property and Pennsylvania Real 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 Pennsylvania Real 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 Pennsylvania Real Estate, you can compare the effects of market volatilities on Simon Property and Pennsylvania Real 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 Pennsylvania Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Pennsylvania Real.
Diversification Opportunities for Simon Property and Pennsylvania Real
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Simon and Pennsylvania is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Pennsylvania Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pennsylvania Real Estate 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 Pennsylvania Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pennsylvania Real Estate has no effect on the direction of Simon Property i.e., Simon Property and Pennsylvania Real go up and down completely randomly.
Pair Corralation between Simon Property and Pennsylvania Real
If you would invest 17,252 in Simon Property Group on August 28, 2024 and sell it today you would earn a total of 759.00 from holding Simon Property Group or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Simon Property Group vs. Pennsylvania Real Estate
Performance |
| Timeline |
| Simon Property Group |
| Pennsylvania Real Estate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Simon Property and Pennsylvania Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Pennsylvania Real
The main advantage of trading using opposite Simon Property and Pennsylvania Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Pennsylvania Real 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 Pennsylvania Real will offset losses from the drop in Pennsylvania Real'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 |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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