Correlation Between LOWES and Simon Property
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By analyzing existing cross correlation between LOWES PANIES INC 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
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LOWES and Simon is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding LOWES PANIES INC 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 PANIES INC 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 is expected to generate 11.89 times less return on investment than Simon Property. But when comparing it to its historical volatility, LOWES PANIES INC is 4.2 times less risky than Simon Property. It trades about 0.05 of its potential returns per unit of risk. Simon Property Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 11,508 in Simon Property Group on September 14, 2024 and sell it today you would earn a total of 6,350 from holding Simon Property Group or generate 55.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.26% |
| Values | Daily Returns |
LOWES PANIES INC vs. Simon Property Group
Performance |
| Timeline |
| LOWES PANIES INC |
| 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.| LOWES vs. Simon Property Group | LOWES vs. Royalty Management Holding | LOWES vs. Coupang LLC | LOWES vs. Waste Management |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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