Correlation Between Simon Property and RF Acquisition
Can any of the company-specific risk be diversified away by investing in both Simon Property and RF Acquisition 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 RF Acquisition 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 RF Acquisition Corp, you can compare the effects of market volatilities on Simon Property and RF Acquisition 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 RF Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and RF Acquisition.
Diversification Opportunities for Simon Property and RF Acquisition
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Simon and RFACR is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and RF Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RF Acquisition Corp 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 RF Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RF Acquisition Corp has no effect on the direction of Simon Property i.e., Simon Property and RF Acquisition go up and down completely randomly.
Pair Corralation between Simon Property and RF Acquisition
Considering the 90-day investment horizon Simon Property is expected to generate 351.82 times less return on investment than RF Acquisition. But when comparing it to its historical volatility, Simon Property Group is 140.95 times less risky than RF Acquisition. It trades about 0.08 of its potential returns per unit of risk. RF Acquisition Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 8.01 in RF Acquisition Corp on September 14, 2024 and sell it today you would earn a total of 5.99 from holding RF Acquisition Corp or generate 74.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 37.65% |
| Values | Daily Returns |
Simon Property Group vs. RF Acquisition Corp
Performance |
| Timeline |
| Simon Property Group |
| RF Acquisition Corp |
Simon Property and RF Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and RF Acquisition
The main advantage of trading using opposite Simon Property and RF Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, RF Acquisition 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 RF Acquisition will offset losses from the drop in RF Acquisition's long position.| Simon Property vs. Site Centers Corp | Simon Property vs. CBL Associates Properties | Simon Property vs. Urban Edge Properties | Simon Property vs. Acadia Realty Trust |
| RF Acquisition vs. Acumen Pharmaceuticals | RF Acquisition vs. Meiwu Technology Co | RF Acquisition vs. Centessa Pharmaceuticals PLC | RF Acquisition 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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