Correlation Between Simon Property and BERKSHIRE
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By analyzing existing cross correlation between Simon Property Group and BERKSHIRE HATHAWAY FIN, you can compare the effects of market volatilities on Simon Property and BERKSHIRE 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 BERKSHIRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and BERKSHIRE.
Diversification Opportunities for Simon Property and BERKSHIRE
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Simon and BERKSHIRE is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and BERKSHIRE HATHAWAY FIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BERKSHIRE HATHAWAY FIN 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 BERKSHIRE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BERKSHIRE HATHAWAY FIN has no effect on the direction of Simon Property i.e., Simon Property and BERKSHIRE go up and down completely randomly.
Pair Corralation between Simon Property and BERKSHIRE
Considering the 90-day investment horizon Simon Property Group is expected to generate 0.76 times more return on investment than BERKSHIRE. However, Simon Property Group is 1.32 times less risky than BERKSHIRE. It trades about 0.27 of its potential returns per unit of risk. BERKSHIRE HATHAWAY FIN is currently generating about -0.08 per unit of risk. If you would invest 17,216 in Simon Property Group on September 4, 2024 and sell it today you would earn a total of 921.00 from holding Simon Property Group or generate 5.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Simon Property Group vs. BERKSHIRE HATHAWAY FIN
Performance |
| Timeline |
| Simon Property Group |
| BERKSHIRE HATHAWAY FIN |
Simon Property and BERKSHIRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and BERKSHIRE
The main advantage of trading using opposite Simon Property and BERKSHIRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, BERKSHIRE 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 BERKSHIRE will offset losses from the drop in BERKSHIRE'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 |
| BERKSHIRE vs. Simon Property Group | BERKSHIRE vs. Hudson Technologies | BERKSHIRE vs. Mativ Holdings | BERKSHIRE vs. Axalta Coating Systems |
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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