Correlation Between Urban Edge and Simon Property
Can any of the company-specific risk be diversified away by investing in both Urban Edge 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 Urban Edge and Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urban Edge Properties and Simon Property Group, you can compare the effects of market volatilities on Urban Edge 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 Urban Edge with a short position of Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urban Edge and Simon Property.
Diversification Opportunities for Urban Edge and Simon Property
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Urban and Simon is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Urban Edge 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 Urban Edge 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 Urban Edge 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 Urban Edge i.e., Urban Edge and Simon Property go up and down completely randomly.
Pair Corralation between Urban Edge and Simon Property
Allowing for the 90-day total investment horizon Urban Edge is expected to generate 1.0 times less return on investment than Simon Property. In addition to that, Urban Edge is 1.07 times more volatile than Simon Property Group. It trades about 0.17 of its total potential returns per unit of risk. Simon Property Group is currently generating about 0.19 per unit of volatility. If you would invest 17,252 in Simon Property Group on August 28, 2024 and sell it today you would earn a total of 759.00 from holding Simon Property Group or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urban Edge Properties vs. Simon Property Group
Performance |
| Timeline |
| Urban Edge Properties |
| Simon Property Group |
Urban Edge and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urban Edge and Simon Property
The main advantage of trading using opposite Urban Edge and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urban Edge 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.| Urban Edge vs. Saul Centers | Urban Edge vs. Site Centers Corp | Urban Edge vs. Kite Realty Group | Urban Edge vs. Retail Opportunity Investments |
| Simon Property vs. Federal Realty Investment | Simon Property vs. Agree Realty | Simon Property vs. National Retail Properties | Simon Property vs. Kimco Realty |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |