Correlation Between Simon Property and AMERICAN
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By analyzing existing cross correlation between Simon Property Group and AMERICAN EXPRESS 42, you can compare the effects of market volatilities on Simon Property and AMERICAN 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 AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and AMERICAN.
Diversification Opportunities for Simon Property and AMERICAN
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Simon and AMERICAN is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and AMERICAN EXPRESS 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN EXPRESS 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 AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN EXPRESS has no effect on the direction of Simon Property i.e., Simon Property and AMERICAN go up and down completely randomly.
Pair Corralation between Simon Property and AMERICAN
Considering the 90-day investment horizon Simon Property Group is expected to generate 2.24 times more return on investment than AMERICAN. However, Simon Property is 2.24 times more volatile than AMERICAN EXPRESS 42. It trades about 0.08 of its potential returns per unit of risk. AMERICAN EXPRESS 42 is currently generating about -0.17 per unit of risk. If you would invest 17,618 in Simon Property Group on September 13, 2024 and sell it today you would earn a total of 241.50 from holding Simon Property Group or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Simon Property Group vs. AMERICAN EXPRESS 42
Performance |
| Timeline |
| Simon Property Group |
| AMERICAN EXPRESS |
Simon Property and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and AMERICAN
The main advantage of trading using opposite Simon Property and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN'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 |
| AMERICAN vs. AEP TEX INC | AMERICAN vs. US BANK NATIONAL | AMERICAN vs. Recursion Pharmaceuticals | AMERICAN vs. SoundHound AI |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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