Correlation Between Tradeweb Markets and Simon Property
Can any of the company-specific risk be diversified away by investing in both Tradeweb Markets 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 Tradeweb Markets and Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tradeweb Markets and Simon Property Group, you can compare the effects of market volatilities on Tradeweb Markets 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 Tradeweb Markets with a short position of Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradeweb Markets and Simon Property.
Diversification Opportunities for Tradeweb Markets and Simon Property
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tradeweb and Simon is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Tradeweb Markets 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 Tradeweb Markets 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 Tradeweb Markets 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 Tradeweb Markets i.e., Tradeweb Markets and Simon Property go up and down completely randomly.
Pair Corralation between Tradeweb Markets and Simon Property
Allowing for the 90-day total investment horizon Tradeweb Markets is expected to generate 1.04 times more return on investment than Simon Property. However, Tradeweb Markets is 1.04 times more volatile than Simon Property Group. It trades about 0.11 of its potential returns per unit of risk. Simon Property Group is currently generating about 0.08 per unit of risk. If you would invest 6,350 in Tradeweb Markets on August 24, 2024 and sell it today you would earn a total of 7,249 from holding Tradeweb Markets or generate 114.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tradeweb Markets vs. Simon Property Group
Performance |
| Timeline |
| Tradeweb Markets |
| Simon Property Group |
Tradeweb Markets and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tradeweb Markets and Simon Property
The main advantage of trading using opposite Tradeweb Markets and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradeweb Markets 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.| Tradeweb Markets vs. Raymond James Financial | Tradeweb Markets vs. PJT Partners | Tradeweb Markets vs. Moelis Co | Tradeweb Markets vs. LPL Financial Holdings |
| Simon Property vs. Federal Realty Investment | Simon Property vs. Agree Realty | Simon Property vs. Tanger Factory Outlet | Simon Property vs. Netstreit 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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