Correlation Between Simon Property and NORDSTROM
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By analyzing existing cross correlation between Simon Property Group and NORDSTROM INC 695, you can compare the effects of market volatilities on Simon Property and NORDSTROM 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 NORDSTROM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and NORDSTROM.
Diversification Opportunities for Simon Property and NORDSTROM
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Simon and NORDSTROM is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and NORDSTROM INC 695 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORDSTROM INC 695 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 NORDSTROM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORDSTROM INC 695 has no effect on the direction of Simon Property i.e., Simon Property and NORDSTROM go up and down completely randomly.
Pair Corralation between Simon Property and NORDSTROM
Considering the 90-day investment horizon Simon Property Group is expected to generate 2.0 times more return on investment than NORDSTROM. However, Simon Property is 2.0 times more volatile than NORDSTROM INC 695. It trades about 0.11 of its potential returns per unit of risk. NORDSTROM INC 695 is currently generating about 0.01 per unit of risk. If you would invest 14,656 in Simon Property Group on September 3, 2024 and sell it today you would earn a total of 3,704 from holding Simon Property Group or generate 25.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
Simon Property Group vs. NORDSTROM INC 695
Performance |
| Timeline |
| Simon Property Group |
| NORDSTROM INC 695 |
Simon Property and NORDSTROM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and NORDSTROM
The main advantage of trading using opposite Simon Property and NORDSTROM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, NORDSTROM 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 NORDSTROM will offset losses from the drop in NORDSTROM'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 |
| NORDSTROM vs. Turning Point Brands | NORDSTROM vs. Universal Music Group | NORDSTROM vs. Diageo PLC ADR | NORDSTROM vs. Zoom Video Communications |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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