Correlation Between Simon Property and Yunhong Green
Can any of the company-specific risk be diversified away by investing in both Simon Property and Yunhong Green 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 Yunhong Green 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 Yunhong Green CTI, you can compare the effects of market volatilities on Simon Property and Yunhong Green 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 Yunhong Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Yunhong Green.
Diversification Opportunities for Simon Property and Yunhong Green
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Simon and Yunhong is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Yunhong Green CTI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunhong Green CTI 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 Yunhong Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunhong Green CTI has no effect on the direction of Simon Property i.e., Simon Property and Yunhong Green go up and down completely randomly.
Pair Corralation between Simon Property and Yunhong Green
Considering the 90-day investment horizon Simon Property Group is expected to generate 0.26 times more return on investment than Yunhong Green. However, Simon Property Group is 3.81 times less risky than Yunhong Green. It trades about 0.12 of its potential returns per unit of risk. Yunhong Green CTI is currently generating about -0.03 per unit of risk. If you would invest 10,257 in Simon Property Group on September 4, 2024 and sell it today you would earn a total of 7,880 from holding Simon Property Group or generate 76.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simon Property Group vs. Yunhong Green CTI
Performance |
| Timeline |
| Simon Property Group |
| Yunhong Green CTI |
Simon Property and Yunhong Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Yunhong Green
The main advantage of trading using opposite Simon Property and Yunhong Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Yunhong Green 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 Yunhong Green will offset losses from the drop in Yunhong Green'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 |
| Yunhong Green vs. Boyd Gaming | Yunhong Green vs. Marine Products | Yunhong Green vs. Brunswick | Yunhong Green vs. Canlan Ice Sports |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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