Correlation Between FactSet Research and Simon Property

Can any of the company-specific risk be diversified away by investing in both FactSet Research and Simon Property 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 FactSet Research and Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FactSet Research Systems and Simon Property Group, you can compare the effects of market volatilities on FactSet Research 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 FactSet Research with a short position of Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of FactSet Research and Simon Property.

Diversification Opportunities for FactSet Research and Simon Property

-0.28

Correlation Coefficient

FactSet Research  Simon Property

Very good diversification

The 3 months correlation between FactSet and Simon is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding FactSet Research Systems 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 FactSet Research 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 FactSet Research Systems 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 FactSet Research i.e., FactSet Research and Simon Property go up and down completely randomly.

Pair Corralation between FactSet Research and Simon Property

Considering the 90-day investment horizon FactSet Research Systems is expected to under-perform the Simon Property. In addition to that, FactSet Research is 1.03 times more volatile than Simon Property Group. It trades about -0.19 of its total potential returns per unit of risk. Simon Property Group is currently generating about -0.12 per unit of volatility. If you would invest  6,090  in Simon Property Group on October 11, 2024 and sell it today you would lose (213.00) from holding Simon Property Group or give up 3.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

FactSet Research Systems  vs.  Simon Property Group

FactSet Research Systems

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FactSet Research Systems are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental indicators, FactSet Research is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Simon Property Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Simon Property Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady technical and fundamental indicators, Simon Property is not utilizing all of its potentials. The current stock price chaos, may contribute to medium-term losses for the stakeholders.

Pair Trading with FactSet Research and Simon Property

The main advantage of trading using opposite FactSet Research and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FactSet Research 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 FactSet Research Systems 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.

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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.