Correlation Between Simon Property and CIGNA
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By analyzing existing cross correlation between Simon Property Group and CIGNA P, you can compare the effects of market volatilities on Simon Property and CIGNA 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 CIGNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and CIGNA.
Diversification Opportunities for Simon Property and CIGNA
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Simon and CIGNA is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and CIGNA P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIGNA P 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 CIGNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIGNA P has no effect on the direction of Simon Property i.e., Simon Property and CIGNA go up and down completely randomly.
Pair Corralation between Simon Property and CIGNA
Considering the 90-day investment horizon Simon Property Group is expected to generate 4.26 times more return on investment than CIGNA. However, Simon Property is 4.26 times more volatile than CIGNA P. It trades about 0.15 of its potential returns per unit of risk. CIGNA P is currently generating about 0.01 per unit of risk. If you would invest 14,078 in Simon Property Group on September 3, 2024 and sell it today you would earn a total of 4,282 from holding Simon Property Group or generate 30.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.63% |
| Values | Daily Returns |
Simon Property Group vs. CIGNA P
Performance |
| Timeline |
| Simon Property Group |
| CIGNA P |
Simon Property and CIGNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and CIGNA
The main advantage of trading using opposite Simon Property and CIGNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, CIGNA 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 CIGNA will offset losses from the drop in CIGNA'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 |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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