Correlation Between Simon Property and LOWES
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By analyzing existing cross correlation between Simon Property Group and LOWES INC 6875, you can compare the effects of market volatilities on Simon Property and LOWES 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 LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and LOWES.
Diversification Opportunities for Simon Property and LOWES
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Simon and LOWES is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and LOWES INC 6875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES INC 6875 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 LOWES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOWES INC 6875 has no effect on the direction of Simon Property i.e., Simon Property and LOWES go up and down completely randomly.
Pair Corralation between Simon Property and LOWES
Considering the 90-day investment horizon Simon Property Group is expected to generate 2.31 times more return on investment than LOWES. However, Simon Property is 2.31 times more volatile than LOWES INC 6875. It trades about 0.09 of its potential returns per unit of risk. LOWES INC 6875 is currently generating about -0.01 per unit of risk. If you would invest 14,425 in Simon Property Group on December 2, 2024 and sell it today you would earn a total of 4,184 from holding Simon Property Group or generate 29.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 87.45% |
| Values | Daily Returns |
Simon Property Group vs. LOWES INC 6875
Performance |
| Timeline |
| Simon Property Group |
| LOWES INC 6875 |
Simon Property and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and LOWES
The main advantage of trading using opposite Simon Property and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, LOWES 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 LOWES will offset losses from the drop in LOWES'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 |
| LOWES vs. Rocky Brands | LOWES vs. Lincoln Electric Holdings | LOWES vs. Copa Holdings SA | LOWES vs. Ryanair Holdings PLC |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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