Correlation Between BERKSHIRE and Simon Property
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By analyzing existing cross correlation between BERKSHIRE HATHAWAY FIN and Simon Property Group, you can compare the effects of market volatilities on BERKSHIRE 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 BERKSHIRE with a short position of Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of BERKSHIRE and Simon Property.
Diversification Opportunities for BERKSHIRE and Simon Property
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BERKSHIRE and Simon is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding BERKSHIRE HATHAWAY FIN 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 BERKSHIRE 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 BERKSHIRE HATHAWAY FIN 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 BERKSHIRE i.e., BERKSHIRE and Simon Property go up and down completely randomly.
Pair Corralation between BERKSHIRE and Simon Property
Assuming the 90 days trading horizon BERKSHIRE HATHAWAY FIN is expected to under-perform the Simon Property. In addition to that, BERKSHIRE is 1.32 times more volatile than Simon Property Group. It trades about -0.08 of its total potential returns per unit of risk. Simon Property Group is currently generating about 0.27 per unit of volatility. If you would invest 17,216 in Simon Property Group on September 4, 2024 and sell it today you would earn a total of 921.00 from holding Simon Property Group or generate 5.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
BERKSHIRE HATHAWAY FIN vs. Simon Property Group
Performance |
| Timeline |
| BERKSHIRE HATHAWAY FIN |
| Simon Property Group |
BERKSHIRE and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BERKSHIRE and Simon Property
The main advantage of trading using opposite BERKSHIRE and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BERKSHIRE 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.| BERKSHIRE vs. Simon Property Group | BERKSHIRE vs. Hudson Technologies | BERKSHIRE vs. Mativ Holdings | BERKSHIRE vs. Axalta Coating Systems |
| 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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