Correlation Between 694308KC0 and Simon Property

Can any of the company-specific risk be diversified away by investing in both 694308KC0 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 694308KC0 and Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PCG 44 01 MAR 32 and Simon Property Group, you can compare the effects of market volatilities on 694308KC0 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 694308KC0 with a short position of Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of 694308KC0 and Simon Property.

Diversification Opportunities for 694308KC0 and Simon Property

-0.42

Correlation Coefficient

694308KC0  Simon Property

Very good diversification

The 3 months correlation between 694308KC0 and Simon is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding PCG 44 01 MAR 32 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 694308KC0 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 PCG 44 01 MAR 32 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 694308KC0 i.e., 694308KC0 and Simon Property go up and down completely randomly.

Pair Corralation between 694308KC0 and Simon Property

Assuming the 90 days trading horizon PCG 44 01 MAR 32 is expected to under-perform the Simon Property. In addition to that, 694308KC0 is 2.16 times more volatile than Simon Property Group. It trades about -0.34 of its total potential returns per unit of risk. Simon Property Group is currently generating about -0.14 per unit of volatility. If you would invest  18,211  in Simon Property Group on October 8, 2024 and sell it today you would lose (770.00) from holding Simon Property Group or give up 4.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	63.16%
Values	Daily Returns

PCG 44 01 MAR 32  vs.  Simon Property Group

PCG 44 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PCG 44 01 MAR 32 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for PCG 44 01 MAR 32 investors.

Simon Property Group

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Simon Property Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Simon Property may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with 694308KC0 and Simon Property

The main advantage of trading using opposite 694308KC0 and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 694308KC0 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 PCG 44 01 MAR 32 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.