Correlation Between Simon Property and Southland Holdings
Can any of the company-specific risk be diversified away by investing in both Simon Property and Southland Holdings 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 Southland Holdings 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 Southland Holdings, you can compare the effects of market volatilities on Simon Property and Southland Holdings 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 Southland Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Southland Holdings.
Diversification Opportunities for Simon Property and Southland Holdings
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Simon and Southland is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Southland Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southland Holdings 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 Southland Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southland Holdings has no effect on the direction of Simon Property i.e., Simon Property and Southland Holdings go up and down completely randomly.
Pair Corralation between Simon Property and Southland Holdings
Considering the 90-day investment horizon Simon Property is expected to generate 2.26 times less return on investment than Southland Holdings. But when comparing it to its historical volatility, Simon Property Group is 8.07 times less risky than Southland Holdings. It trades about 0.27 of its potential returns per unit of risk. Southland Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 301.00 in Southland Holdings on August 31, 2024 and sell it today you would earn a total of 20.00 from holding Southland Holdings or generate 6.64% 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. Southland Holdings
Performance |
| Timeline |
| Simon Property Group |
| Southland Holdings |
Simon Property and Southland Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Southland Holdings
The main advantage of trading using opposite Simon Property and Southland Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Southland Holdings 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 Southland Holdings will offset losses from the drop in Southland Holdings' long position.| Simon Property vs. Federal Realty Investment | Simon Property vs. Agree Realty | Simon Property vs. National Retail Properties | Simon Property vs. Kimco Realty |
| Southland Holdings vs. Citi Trends | Southland Holdings vs. American Eagle Outfitters | Southland Holdings vs. Summit Materials | Southland Holdings vs. Boot Barn Holdings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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