Correlation Between Simon Property and Retail Estates
Can any of the company-specific risk be diversified away by investing in both Simon Property and Retail Estates 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 Retail Estates 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 Retail Estates NV, you can compare the effects of market volatilities on Simon Property and Retail Estates 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 Retail Estates. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Retail Estates.
Diversification Opportunities for Simon Property and Retail Estates
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Simon and Retail is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Retail Estates NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retail Estates NV 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 Retail Estates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retail Estates NV has no effect on the direction of Simon Property i.e., Simon Property and Retail Estates go up and down completely randomly.
Pair Corralation between Simon Property and Retail Estates
Assuming the 90 days horizon Simon Property Group is expected to generate 0.77 times more return on investment than Retail Estates. However, Simon Property Group is 1.29 times less risky than Retail Estates. It trades about 0.14 of its potential returns per unit of risk. Retail Estates NV is currently generating about -0.07 per unit of risk. If you would invest 16,390 in Simon Property Group on October 23, 2024 and sell it today you would earn a total of 345.00 from holding Simon Property Group or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Simon Property Group vs. Retail Estates NV
Performance |
| Timeline |
| Simon Property Group |
| Retail Estates NV |
Simon Property and Retail Estates Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Retail Estates
The main advantage of trading using opposite Simon Property and Retail Estates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Retail Estates 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 Retail Estates will offset losses from the drop in Retail Estates' long position.| Simon Property vs. National Health Investors | Simon Property vs. WESANA HEALTH HOLD | Simon Property vs. US Physical Therapy | Simon Property vs. Siemens Healthineers AG |
| Retail Estates vs. Simon Property Group | Retail Estates vs. Realty Income | Retail Estates vs. Link Real Estate | Retail Estates vs. Range Resources Corp |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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