Correlation Between Centaur Bci and Hammerson PLC
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By analyzing existing cross correlation between Centaur Bci Balanced and Hammerson PLC, you can compare the effects of market volatilities on Centaur Bci and Hammerson PLC 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 Centaur Bci with a short position of Hammerson PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Bci and Hammerson PLC.
Diversification Opportunities for Centaur Bci and Hammerson PLC
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Centaur and Hammerson is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Bci Balanced and Hammerson PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hammerson PLC and Centaur Bci 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 Centaur Bci Balanced are associated (or correlated) with Hammerson PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hammerson PLC has no effect on the direction of Centaur Bci i.e., Centaur Bci and Hammerson PLC go up and down completely randomly.
Pair Corralation between Centaur Bci and Hammerson PLC
Assuming the 90 days trading horizon Centaur Bci is expected to generate 53.26 times less return on investment than Hammerson PLC. But when comparing it to its historical volatility, Centaur Bci Balanced is 102.61 times less risky than Hammerson PLC. It trades about 0.12 of its potential returns per unit of risk. Hammerson PLC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 66,300 in Hammerson PLC on September 2, 2024 and sell it today you would earn a total of 602,300 from holding Hammerson PLC or generate 908.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.37% |
| Values | Daily Returns |
Centaur Bci Balanced vs. Hammerson PLC
Performance |
| Timeline |
| Centaur Bci Balanced |
| Hammerson PLC |
Centaur Bci and Hammerson PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Bci and Hammerson PLC
The main advantage of trading using opposite Centaur Bci and Hammerson PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Bci position performs unexpectedly, Hammerson PLC 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 Hammerson PLC will offset losses from the drop in Hammerson PLC's long position.| Centaur Bci vs. 4d Bci Moderate | Centaur Bci vs. Coronation Global Optimum | Centaur Bci vs. Absa Multi managed Absolute | Centaur Bci vs. Coronation Balanced Plus |
| Hammerson PLC vs. HomeChoice Investments | Hammerson PLC vs. Kap Industrial Holdings | Hammerson PLC vs. Bytes Technology | Hammerson PLC vs. Master Drilling Group |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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