Correlation Between Simon Property and General Growth
Can any of the company-specific risk be diversified away by investing in both Simon Property and General Growth 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 Simon Property and General Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simon Property Group and General Growth Properties, you can compare the effects of market volatilities on Simon Property and General Growth 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 Property with a short position of General Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and General Growth.
Diversification Opportunities for Simon Property and General Growth
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Simon and General is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and General Growth Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Growth Properties and Simon Property 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 Property Group are associated (or correlated) with General Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Growth Properties has no effect on the direction of Simon Property i.e., Simon Property and General Growth go up and down completely randomly.
Pair Corralation between Simon Property and General Growth
If you would invest 14,555 in Simon Property Group on February 10, 2024 and sell it today you would earn a total of 217.00 from holding Simon Property Group or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Simon Property Group vs. General Growth Properties
Performance |
| Timeline |
| Simon Property Group |
| General Growth Properties |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Simon Property and General Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and General Growth
The main advantage of trading using opposite Simon Property and General Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, General Growth 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 General Growth will offset losses from the drop in General Growth's long position.| Simon Property vs. Federal Realty Investment | Simon Property vs. Agree Realty | Simon Property vs. National Retail Properties | Simon Property vs. Kimco Realty |
| General Growth vs. Arrow Financial | General Growth vs. Chiba Bank Ltd | General Growth vs. Asure Software | General Growth vs. ServiceNow |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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