Correlation Between SIMON and Neogen
Specify exactly 2 symbols:
By analyzing existing cross correlation between SIMON PPTY GROUP and Neogen, you can compare the effects of market volatilities on SIMON and Neogen 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 SIMON with a short position of Neogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIMON and Neogen.
Diversification Opportunities for SIMON and Neogen
Very weak diversification
The 3 months correlation between SIMON and Neogen is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding SIMON PPTY GROUP and Neogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogen and SIMON 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 SIMON PPTY GROUP are associated (or correlated) with Neogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogen has no effect on the direction of SIMON i.e., SIMON and Neogen go up and down completely randomly.
Pair Corralation between SIMON and Neogen
Assuming the 90 days trading horizon SIMON PPTY GROUP is expected to under-perform the Neogen. But the bond apears to be less risky and, when comparing its historical volatility, SIMON PPTY GROUP is 2.01 times less risky than Neogen. The bond trades about -0.22 of its potential returns per unit of risk. The Neogen is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,405 in Neogen on August 29, 2024 and sell it today you would earn a total of 9.00 from holding Neogen or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
SIMON PPTY GROUP vs. Neogen
Performance |
| Timeline |
| SIMON PPTY GROUP |
| Neogen |
SIMON and Neogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIMON and Neogen
The main advantage of trading using opposite SIMON and Neogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIMON position performs unexpectedly, Neogen 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 Neogen will offset losses from the drop in Neogen's long position.The idea behind SIMON PPTY GROUP and Neogen 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.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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |