Correlation Between SIMON and JetAI

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

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

Diversification Opportunities for SIMON and JetAI

-0.37

Correlation Coefficient

SIMON  JetAI

Very good diversification

The 3 months correlation between SIMON and JetAI is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding SIMON PROPERTY GROUP and JetAI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JetAI Inc and SIMON 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 SIMON PROPERTY GROUP are associated (or correlated) with JetAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JetAI Inc has no effect on the direction of SIMON i.e., SIMON and JetAI go up and down completely randomly.

Pair Corralation between SIMON and JetAI

Assuming the 90 days trading horizon SIMON PROPERTY GROUP is expected to generate 0.43 times more return on investment than JetAI. However, SIMON PROPERTY GROUP is 2.34 times less risky than JetAI. It trades about -0.03 of its potential returns per unit of risk. JetAI Inc is currently generating about -0.06 per unit of risk. If you would invest  9,070  in SIMON PROPERTY GROUP on May 17, 2025 and sell it today you would lose (357.00) from holding SIMON PROPERTY GROUP or give up 3.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

SIMON PROPERTY GROUP  vs.  JetAI Inc

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.

JetAI Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days JetAI Inc 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 September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with SIMON and JetAI

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

The idea behind SIMON PROPERTY GROUP and JetAI Inc 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.