Correlation Between Seritage Growth and Simon Property
Can any of the company-specific risk be diversified away by investing in both Seritage Growth and Simon Property 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 Seritage Growth and Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seritage Growth Properties and Simon Property Group, you can compare the effects of market volatilities on Seritage Growth and Simon Property 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 Seritage Growth with a short position of Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seritage Growth and Simon Property.
Diversification Opportunities for Seritage Growth and Simon Property
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Seritage and Simon is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Seritage Growth Properties and Simon Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simon Property Group and Seritage Growth 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 Seritage Growth Properties are associated (or correlated) with Simon Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simon Property Group has no effect on the direction of Seritage Growth i.e., Seritage Growth and Simon Property go up and down completely randomly.
Pair Corralation between Seritage Growth and Simon Property
Assuming the 90 days trading horizon Seritage Growth Properties is expected to generate 1.48 times more return on investment than Simon Property. However, Seritage Growth is 1.48 times more volatile than Simon Property Group. It trades about -0.01 of its potential returns per unit of risk. Simon Property Group is currently generating about -0.11 per unit of risk. If you would invest 2,213 in Seritage Growth Properties on August 28, 2024 and sell it today you would lose (5.00) from holding Seritage Growth Properties or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seritage Growth Properties vs. Simon Property Group
Performance |
| Timeline |
| Seritage Growth Prop |
| Simon Property Group |
Seritage Growth and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seritage Growth and Simon Property
The main advantage of trading using opposite Seritage Growth and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seritage Growth position performs unexpectedly, Simon Property 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 Simon Property will offset losses from the drop in Simon Property's long position.| Seritage Growth vs. Slate Grocery REIT | Seritage Growth vs. Riocan REIT | Seritage Growth vs. Smart REIT | Seritage Growth vs. Plaza Retail REIT |
| Simon Property vs. Kimco Realty | Simon Property vs. Saul Centers | Simon Property vs. Saul Centers | Simon Property vs. Urban Edge Properties |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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