Correlation Between Complete Fin and SIMON

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

By analyzing existing cross correlation between Complete Fin Solu and SIMON PPTY GROUP, you can compare the effects of market volatilities on Complete Fin and SIMON 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 Complete Fin with a short position of SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Complete Fin and SIMON.

Diversification Opportunities for Complete Fin and SIMON

0.44

Correlation Coefficient

Complete Fin  SIMON

Very weak diversification

The 3 months correlation between Complete and SIMON is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Complete Fin Solu and SIMON PPTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PPTY GROUP and Complete Fin 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 Complete Fin Solu are associated (or correlated) with SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PPTY GROUP has no effect on the direction of Complete Fin i.e., Complete Fin and SIMON go up and down completely randomly.

Pair Corralation between Complete Fin and SIMON

Given the investment horizon of 90 days Complete Fin Solu is expected to generate 17.62 times more return on investment than SIMON. However, Complete Fin is 17.62 times more volatile than SIMON PPTY GROUP. It trades about 0.07 of its potential returns per unit of risk. SIMON PPTY GROUP is currently generating about 0.25 per unit of risk. If you would invest  16.00  in Complete Fin Solu on May 26, 2025 and sell it today you would lose (2.00) from holding Complete Fin Solu or give up 12.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	46.88%
Values	Daily Returns

Complete Fin Solu  vs.  SIMON PPTY GROUP

Complete Fin Solu

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Complete Fin Solu are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Complete Fin unveiled solid returns over the last few months and may actually be approaching a breakup point.

SIMON PPTY GROUP

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SIMON PPTY GROUP are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, SIMON sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Complete Fin and SIMON

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

The idea behind Complete Fin Solu and SIMON PPTY 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.