Correlation Between MobileSmith and Simon Property

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

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

Diversification Opportunities for MobileSmith and Simon Property

0.0

Correlation Coefficient

MobileSmith  Simon Property

Pay attention - limited upside

The 3 months correlation between MobileSmith and Simon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MobileSmith 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 MobileSmith 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 MobileSmith 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 MobileSmith i.e., MobileSmith and Simon Property go up and down completely randomly.

Pair Corralation between MobileSmith and Simon Property

If you would invest  5,900  in Simon Property Group on October 26, 2024 and sell it today you would earn a total of  39.00  from holding Simon Property Group or generate 0.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

MobileSmith  vs.  Simon Property Group

MobileSmith

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MobileSmith has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, MobileSmith is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail 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 MobileSmith and Simon Property

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

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.