Correlation Between Senti Biosciences and SIMON

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

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

Diversification Opportunities for Senti Biosciences and SIMON

0.21

Correlation Coefficient

Senti Biosciences  SIMON

Modest diversification

The 3 months correlation between Senti and SIMON is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Senti Biosciences 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 Senti Biosciences 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 Senti Biosciences 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 Senti Biosciences i.e., Senti Biosciences and SIMON go up and down completely randomly.

Pair Corralation between Senti Biosciences and SIMON

Given the investment horizon of 90 days Senti Biosciences is expected to generate 3.24 times more return on investment than SIMON. However, Senti Biosciences is 3.24 times more volatile than SIMON PROPERTY GROUP. It trades about 0.09 of its potential returns per unit of risk. SIMON PROPERTY GROUP is currently generating about -0.18 per unit of risk. If you would invest  145.00  in Senti Biosciences on July 5, 2025 and sell it today you would earn a total of  7.00  from holding Senti Biosciences or generate 4.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.65%
Values	Daily Returns

Senti Biosciences  vs.  SIMON PROPERTY GROUP

Senti Biosciences

Risk-Adjusted Performance

Weakest

Over the last 90 days Senti Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in November 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

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 current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Senti Biosciences and SIMON

The main advantage of trading using opposite Senti Biosciences and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senti Biosciences 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 Senti Biosciences 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.