Correlation Between Upper Street and Simon Property

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

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

Diversification Opportunities for Upper Street and Simon Property

0.0

Correlation Coefficient

Upper Street  Simon Property

Pay attention - limited upside

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

Pair Corralation between Upper Street and Simon Property

If you would invest  18,150  in Simon Property Group on November 29, 2024 and sell it today you would earn a total of  108.00  from holding Simon Property Group or generate 0.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Upper Street Marketing  vs.  Simon Property Group

Upper Street Marketing

Risk-Adjusted Performance

Very Weak

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

Simon Property Group

Risk-Adjusted Performance

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 Upper Street and Simon Property

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