Correlation Between Simon Property and Alleghany
Can any of the company-specific risk be diversified away by investing in both Simon Property and Alleghany at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Simon Property and Alleghany into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simon Property Group and Alleghany, you can compare the effects of market volatilities on Simon Property and Alleghany 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 Alleghany. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Alleghany.
Diversification Opportunities for Simon Property and Alleghany
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Simon and Alleghany is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Alleghany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alleghany 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 Alleghany. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alleghany has no effect on the direction of Simon Property i.e., Simon Property and Alleghany go up and down completely randomly.
Pair Corralation between Simon Property and Alleghany
If you would invest 10,723 in Simon Property Group on September 2, 2024 and sell it today you would earn a total of 7,637 from holding Simon Property Group or generate 71.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Simon Property Group vs. Alleghany
Performance |
| Timeline |
| Simon Property Group |
| Alleghany |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Simon Property and Alleghany Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Alleghany
The main advantage of trading using opposite Simon Property and Alleghany positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Alleghany 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 Alleghany will offset losses from the drop in Alleghany's long position.| Simon Property vs. Federal Realty Investment | Simon Property vs. National Retail Properties | Simon Property vs. Kimco Realty |
| Alleghany vs. Getty Realty | Alleghany vs. Asbury Automotive Group | Alleghany vs. Cedar Realty Trust | Alleghany vs. Cardinal Health |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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