Correlation Between Simon Property and Silicon Gaming
Can any of the company-specific risk be diversified away by investing in both Simon Property and Silicon Gaming 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 Silicon Gaming 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 Silicon Gaming, you can compare the effects of market volatilities on Simon Property and Silicon Gaming 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 Silicon Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Silicon Gaming.
Diversification Opportunities for Simon Property and Silicon Gaming
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Simon and Silicon is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Silicon Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicon Gaming 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 Silicon Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicon Gaming has no effect on the direction of Simon Property i.e., Simon Property and Silicon Gaming go up and down completely randomly.
Pair Corralation between Simon Property and Silicon Gaming
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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simon Property Group vs. Silicon Gaming
Performance |
| Timeline |
| Simon Property Group |
| Silicon Gaming |
Simon Property and Silicon Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Silicon Gaming
The main advantage of trading using opposite Simon Property and Silicon Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Silicon Gaming 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 Silicon Gaming will offset losses from the drop in Silicon Gaming's 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 |
| Silicon Gaming vs. Cedar Realty Trust | Silicon Gaming vs. Wheeler Real Estate | Silicon Gaming vs. Macerich Company | Silicon Gaming 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |