Correlation Between LOWES and Simon Property
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By analyzing existing cross correlation between LOWES INC 6875 and Simon Property Group, you can compare the effects of market volatilities on LOWES 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 LOWES with a short position of Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOWES and Simon Property.
Diversification Opportunities for LOWES and Simon Property
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LOWES and Simon is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding LOWES INC 6875 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 LOWES 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 LOWES INC 6875 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 LOWES i.e., LOWES and Simon Property go up and down completely randomly.
Pair Corralation between LOWES and Simon Property
Assuming the 90 days trading horizon LOWES INC 6875 is expected to generate 1.43 times more return on investment than Simon Property. However, LOWES is 1.43 times more volatile than Simon Property Group. It trades about 0.03 of its potential returns per unit of risk. Simon Property Group is currently generating about 0.04 per unit of risk. If you would invest 10,648 in LOWES INC 6875 on September 13, 2024 and sell it today you would earn a total of 65.00 from holding LOWES INC 6875 or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
LOWES INC 6875 vs. Simon Property Group
Performance |
| Timeline |
| LOWES INC 6875 |
| Simon Property Group |
LOWES and Simon Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LOWES and Simon Property
The main advantage of trading using opposite LOWES and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOWES 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.The idea behind LOWES INC 6875 and Simon Property Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Simon Property vs. Site Centers Corp | Simon Property vs. CBL Associates Properties | Simon Property vs. Urban Edge Properties | Simon Property vs. Acadia Realty Trust |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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