Correlation Between Everspin Technologies and Simon Property

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

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

Diversification Opportunities for Everspin Technologies and Simon Property

-0.17

Correlation Coefficient

Everspin Technologies  Simon Property

Good diversification

The 3 months correlation between Everspin and Simon is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Everspin Technologies 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 Everspin Technologies 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 Everspin Technologies 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 Everspin Technologies i.e., Everspin Technologies and Simon Property go up and down completely randomly.

Pair Corralation between Everspin Technologies and Simon Property

Given the investment horizon of 90 days Everspin Technologies is expected to generate 5.08 times less return on investment than Simon Property. In addition to that, Everspin Technologies is 2.09 times more volatile than Simon Property Group. It trades about 0.01 of its total potential returns per unit of risk. Simon Property Group is currently generating about 0.1 per unit of volatility. If you would invest  17,138  in Simon Property Group on October 23, 2024 and sell it today you would earn a total of  276.00  from holding Simon Property Group or generate 1.61% return on investment over 90 days.

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

Everspin Technologies  vs.  Simon Property Group

Everspin Technologies

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Everspin Technologies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Everspin Technologies may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Simon Property Group

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Simon Property Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Simon Property is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Everspin Technologies and Simon Property

The main advantage of trading using opposite Everspin Technologies and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everspin Technologies 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 Everspin Technologies 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 Stocks Directory module to find actively traded stocks across global markets.