Correlation Between Simon Property and Serina Therapeutics

Can any of the company-specific risk be diversified away by investing in both Simon Property and Serina Therapeutics 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 Serina Therapeutics 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 Serina Therapeutics, you can compare the effects of market volatilities on Simon Property and Serina Therapeutics 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 Serina Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Serina Therapeutics.

Diversification Opportunities for Simon Property and Serina Therapeutics

-0.76

Correlation Coefficient

Simon Property  Serina Therapeutics

Pay attention - limited upside

The 3 months correlation between Simon and Serina is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Serina Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Serina Therapeutics 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 Serina Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Serina Therapeutics has no effect on the direction of Simon Property i.e., Simon Property and Serina Therapeutics go up and down completely randomly.

Pair Corralation between Simon Property and Serina Therapeutics

Considering the 90-day investment horizon Simon Property Group is expected to under-perform the Serina Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Simon Property Group is 7.32 times less risky than Serina Therapeutics. The stock trades about -0.12 of its potential returns per unit of risk. The Serina Therapeutics is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  475.00  in Serina Therapeutics on September 26, 2024 and sell it today you would earn a total of  65.00  from holding Serina Therapeutics or generate 13.68% return on investment over 90 days.

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

Simon Property Group  vs.  Serina Therapeutics

Simon Property Group

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Simon Property Group are ranked lower than 4 (%) 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.

Serina Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Serina Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Simon Property and Serina Therapeutics

The main advantage of trading using opposite Simon Property and Serina Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property position performs unexpectedly, Serina Therapeutics 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 Serina Therapeutics will offset losses from the drop in Serina Therapeutics' long position.

The idea behind Simon Property Group and Serina Therapeutics 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.