Correlation Between SM Prime and WFD Unibail
Can any of the company-specific risk be diversified away by investing in both SM Prime and WFD Unibail 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 SM Prime and WFD Unibail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SM Prime Holdings and WFD Unibail Rodamco, you can compare the effects of market volatilities on SM Prime and WFD Unibail 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 SM Prime with a short position of WFD Unibail. Check out your portfolio center. Please also check ongoing floating volatility patterns of SM Prime and WFD Unibail.
Diversification Opportunities for SM Prime and WFD Unibail
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SPHXF and WFD is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding SM Prime Holdings and WFD Unibail Rodamco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WFD Unibail Rodamco and SM Prime 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 SM Prime Holdings are associated (or correlated) with WFD Unibail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WFD Unibail Rodamco has no effect on the direction of SM Prime i.e., SM Prime and WFD Unibail go up and down completely randomly.
Pair Corralation between SM Prime and WFD Unibail
Assuming the 90 days horizon SM Prime Holdings is expected to generate 2.26 times more return on investment than WFD Unibail. However, SM Prime is 2.26 times more volatile than WFD Unibail Rodamco. It trades about 0.01 of its potential returns per unit of risk. WFD Unibail Rodamco is currently generating about 0.03 per unit of risk. If you would invest 43.00 in SM Prime Holdings on August 15, 2025 and sell it today you would earn a total of 0.00 from holding SM Prime Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SM Prime Holdings vs. WFD Unibail Rodamco
Performance |
| Timeline |
| SM Prime Holdings |
| WFD Unibail Rodamco |
SM Prime and WFD Unibail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SM Prime and WFD Unibail
The main advantage of trading using opposite SM Prime and WFD Unibail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SM Prime position performs unexpectedly, WFD Unibail 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 WFD Unibail will offset losses from the drop in WFD Unibail's long position.| SM Prime vs. Azrieli Group | SM Prime vs. Hongkong Land Holdings | SM Prime vs. Scentre Group | SM Prime vs. Fastighets AB Balder |
| WFD Unibail vs. CapitaLand Integrated Commercial | WFD Unibail vs. Link Real Estate | WFD Unibail vs. Scentre Group | WFD Unibail vs. Segro Plc |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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