Correlation Between Greentown Management and SIMON

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

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

Diversification Opportunities for Greentown Management and SIMON

0.36

Correlation Coefficient

Greentown Management  SIMON

Weak diversification

The 3 months correlation between Greentown and SIMON is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Greentown Management Holdings 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 Greentown Management 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 Greentown Management Holdings 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 PROPERTY GROUP has no effect on the direction of Greentown Management i.e., Greentown Management and SIMON go up and down completely randomly.

Pair Corralation between Greentown Management and SIMON

Assuming the 90 days horizon Greentown Management Holdings is expected to generate 0.98 times more return on investment than SIMON. However, Greentown Management Holdings is 1.03 times less risky than SIMON. It trades about 0.13 of its potential returns per unit of risk. SIMON PROPERTY GROUP is currently generating about -0.09 per unit of risk. If you would invest  47.00  in Greentown Management Holdings on May 16, 2025 and sell it today you would earn a total of  3.00  from holding Greentown Management Holdings or generate 6.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.83%
Values	Daily Returns

Greentown Management Holdings  vs.  SIMON PROPERTY GROUP

Greentown Management

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Greentown Management Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical indicators, Greentown Management may actually be approaching a critical reversion point that can send shares even higher in September 2025.

SIMON PROPERTY GROUP

Risk-Adjusted Performance

Weakest

Over the last 90 days SIMON PROPERTY GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SIMON is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Greentown Management and SIMON

The main advantage of trading using opposite Greentown Management and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greentown Management 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 Greentown Management Holdings 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.