Correlation Between Genuine Parts and Simon Property
Can any of the company-specific risk be diversified away by investing in both Genuine Parts 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 Genuine Parts and Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genuine Parts Co and Simon Property Group, you can compare the effects of market volatilities on Genuine Parts 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 Genuine Parts with a short position of Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genuine Parts and Simon Property.
Diversification Opportunities for Genuine Parts and Simon Property
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Genuine and Simon is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Genuine Parts Co 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 Genuine Parts 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 Genuine Parts Co 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 Genuine Parts i.e., Genuine Parts and Simon Property go up and down completely randomly.
Pair Corralation between Genuine Parts and Simon Property
Considering the 90-day investment horizon Genuine Parts Co is expected to generate 2.01 times more return on investment than Simon Property. However, Genuine Parts is 2.01 times more volatile than Simon Property Group. It trades about 0.08 of its potential returns per unit of risk. Simon Property Group is currently generating about -0.13 per unit of risk. If you would invest 15,041 in Genuine Parts Co on February 7, 2024 and sell it today you would earn a total of 628.00 from holding Genuine Parts Co or generate 4.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Genuine Parts Co vs. Simon Property Group
Performance |
Timeline |
Genuine Parts |
Simon Property Group |
Genuine Parts and Simon Property Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Genuine Parts and Simon Property
The main advantage of trading using opposite Genuine Parts and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genuine Parts 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.Genuine Parts vs. Gentex | Genuine Parts vs. Adient PLC | Genuine Parts vs. Autoliv | Genuine Parts vs. Fox Factory Holding |
Simon Property vs. Federal Realty Investment | Simon Property vs. Agree Realty | Simon Property vs. National Retail Properties | Simon Property vs. Kimco Realty |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |