Correlation Between Simon Property and FactSet Research
Can any of the company-specific risk be diversified away by investing in both Simon Property and FactSet Research 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 FactSet Research 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 FactSet Research Systems, you can compare the effects of market volatilities on Simon Property and FactSet Research 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 FactSet Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and FactSet Research.
Diversification Opportunities for Simon Property and FactSet Research
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Simon and FactSet is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and FactSet Research Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FactSet Research Systems 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 FactSet Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FactSet Research Systems has no effect on the direction of Simon Property i.e., Simon Property and FactSet Research go up and down completely randomly.
Pair Corralation between Simon Property and FactSet Research
Assuming the 90 days trading horizon Simon Property Group is expected to under-perform the FactSet Research. But the preferred stock apears to be less risky and, when comparing its historical volatility, Simon Property Group is 1.18 times less risky than FactSet Research. The preferred stock trades about -0.06 of its potential returns per unit of risk. The FactSet Research Systems is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 45,584 in FactSet Research Systems on October 11, 2024 and sell it today you would earn a total of 262.00 from holding FactSet Research Systems or generate 0.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Simon Property Group vs. FactSet Research Systems
Performance |
Timeline |
Simon Property Group |
FactSet Research Systems |
Simon Property and FactSet Research Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Simon Property and FactSet Research
The main advantage of trading using opposite Simon Property and FactSet Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, FactSet Research 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 FactSet Research will offset losses from the drop in FactSet Research's long position.Simon Property vs. Kimco Realty | Simon Property vs. Saul Centers | Simon Property vs. Saul Centers | Simon Property vs. Urban Edge Properties |
FactSet Research vs. Dun Bradstreet Holdings | FactSet Research vs. Moodys | FactSet Research vs. MSCI Inc | FactSet Research vs. Intercontinental Exchange |
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.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |