Simon Property Group Stock Volatility

SPG Stock  USD 147.67  1.16  0.78%   
Simon Property Group owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0335, which indicates the firm had a -0.0335% return per unit of risk over the last 3 months. Simon Property Group exposes thirty different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Simon Property's Risk Adjusted Performance of 0.0221, coefficient of variation of 4051.43, and Semi Deviation of 1.35 to confirm the risk estimate we provide. Key indicators related to Simon Property's volatility include:
30 Days Market Risk
Chance Of Distress
30 Days Economic Sensitivity
Simon Property Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Simon daily returns, and it is calculated using variance and standard deviation. We also use Simon's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Simon Property volatility.
  

ESG Sustainability

While most ESG disclosures are voluntary, Simon Property's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Simon Property's managers and investors.
Environmental
Governance
Social
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Simon Property can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game as hey may decide to buy additional stocks of Simon Property at lower prices to lower their average cost per share. Similarly, when the prices of Simon Property's stock rise, investors can sell out and invest the proceeds in other equities with better opportunities.

Moving together with Simon Stock

  0.61PW Power REITPairCorr

Simon Property Market Sensitivity And Downside Risk

Simon Property's beta coefficient measures the volatility of Simon stock compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Simon stock's returns against your selected market. In other words, Simon Property's beta of 1.53 provides an investor with an approximation of how much risk Simon Property stock can potentially add to one of your existing portfolios. Simon Property Group has relatively low volatility with skewness of -0.34 and kurtosis of 0.94. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Simon Property's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Simon Property's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Simon Property Group Demand Trend
Check current 90 days Simon Property correlation with market (NYSE Composite)

Simon Beta

    
  1.53  
Simon standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  1.45  
It is essential to understand the difference between upside risk (as represented by Simon Property's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Simon Property's daily returns or price. Since the actual investment returns on holding a position in simon stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Simon Property.

Using Simon Put Option to Manage Risk

Put options written on Simon Property grant holders of the option the right to sell a specified amount of Simon Property at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Simon Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Simon Property's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Simon Property will be realized, the loss incurred will be offset by the profits made with the option trade.

Simon Property's PUT expiring on 2024-06-21

   Profit   
       Simon Property Price At Expiration  

Current Simon Property Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2024-06-21 PUT at $120.0-0.00298.0E-43042024-06-210.0 - 0.10.01View
Put
2024-06-21 PUT at $130.0-0.01050.00344532024-06-210.0 - 0.050.03View
Put
2024-06-21 PUT at $135.0-0.02040.00755112024-06-210.0 - 0.050.05View
Put
2024-06-21 PUT at $140.0-0.03840.018613872024-06-210.05 - 0.150.07View
Put
2024-06-21 PUT at $145.0-0.20820.08527372024-06-210.3 - 0.450.4View
Put
2024-06-21 PUT at $150.0-0.77920.10025082024-06-212.45 - 4.42.7View
Put
2024-06-21 PUT at $155.0-0.87470.03372732024-06-216.2 - 7.76.28View
Put
2024-06-21 PUT at $160.0-0.790.0208692024-06-2110.3 - 13.910.9View
Put
2024-06-21 PUT at $170.0-0.8330.012422024-06-2120.6 - 24.029.18View
View All Simon Property Options

Simon Property Group Stock Volatility Analysis

Volatility refers to the frequency at which Simon Property stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Simon Property's price changes. Investors will then calculate the volatility of Simon Property's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Simon Property's volatility:

Historical Volatility

This type of stock volatility measures Simon Property's fluctuations based on previous trends. It's commonly used to predict Simon Property's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Simon Property's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Simon Property's to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Simon Property Group Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Simon Property Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 1.5337 . This usually implies as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Simon Property will likely underperform.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Simon Property or Retail REITs sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Simon Property's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Simon stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Simon Property Group has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite.
   Predicted Return Density   
       Returns  
Simon Property's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how simon stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Simon Property Price Volatility?

Several factors can influence a stock's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Simon Property Stock Risk Measures

Considering the 90-day investment horizon the coefficient of variation of Simon Property is -2988.09. The daily returns are distributed with a variance of 2.11 and standard deviation of 1.45. The mean deviation of Simon Property Group is currently at 1.06. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.69
α
Alpha over NYSE Composite
-0.02
β
Beta against NYSE Composite1.53
σ
Overall volatility
1.45
Ir
Information ratio -0.0042

Simon Property Stock Return Volatility

Simon Property historical daily return volatility represents how much of Simon Property stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 1.4533% on return distribution over 90 days investment horizon. By contrast, NYSE Composite accepts 0.7246% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Simon Property Volatility

Volatility is a rate at which the price of Simon Property or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Simon Property may increase or decrease. In other words, similar to Simon's beta indicator, it measures the risk of Simon Property and helps estimate the fluctuations that may happen in a short period of time. So if prices of Simon Property fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Last ReportedProjected for Next Year
Selling And Marketing Expenses127.3 M98 M
Market Cap46.6 B48.9 B
Simon Property's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Simon Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Simon Property's price varies over time.

3 ways to utilize Simon Property's volatility to invest better

Higher Simon Property's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Simon Property Group stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Simon Property Group stock volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Simon Property Group investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Simon Property's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of Simon Property's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Simon Property Investment Opportunity

Simon Property Group has a volatility of 1.45 and is 2.01 times more volatile than NYSE Composite. Compared to the overall equity markets, volatility of historical daily returns of Simon Property Group is lower than 12 percent of all global equities and portfolios over the last 90 days. You can use Simon Property Group to protect your portfolios against small market fluctuations. The stock experiences a moderate downward daily trend and can be a good diversifier. Check odds of Simon Property to be traded at $144.72 in 90 days.

Poor diversification

The correlation between Simon Property Group and NYA is 0.77 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and NYA in the same portfolio, assuming nothing else is changed.

Simon Property Additional Risk Indicators

The analysis of Simon Property's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Simon Property's investment and either accepting that risk or mitigating it. Along with some common measures of Simon Property stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Simon Property Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Simon Property as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Simon Property's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Simon Property's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Simon Property Group.

Complementary Tools for Simon Stock analysis

When running Simon Property's price analysis, check to measure Simon Property's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Simon Property is operating at the current time. Most of Simon Property's value examination focuses on studying past and present price action to predict the probability of Simon Property's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Simon Property's price. Additionally, you may evaluate how the addition of Simon Property to your portfolios can decrease your overall portfolio volatility.
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