Correlation Between EMedia Holdings and Hammerson PLC
Can any of the company-specific risk be diversified away by investing in both EMedia Holdings and Hammerson PLC 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 EMedia Holdings and Hammerson PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eMedia Holdings Limited and Hammerson PLC, you can compare the effects of market volatilities on EMedia Holdings 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 EMedia Holdings with a short position of Hammerson PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMedia Holdings and Hammerson PLC.
Diversification Opportunities for EMedia Holdings and Hammerson PLC
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EMedia and Hammerson is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding eMedia Holdings Limited and Hammerson PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hammerson PLC and EMedia Holdings 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 eMedia Holdings Limited 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 EMedia Holdings i.e., EMedia Holdings and Hammerson PLC go up and down completely randomly.
Pair Corralation between EMedia Holdings and Hammerson PLC
Assuming the 90 days trading horizon eMedia Holdings Limited is expected to under-perform the Hammerson PLC. In addition to that, EMedia Holdings is 1.69 times more volatile than Hammerson PLC. It trades about -0.24 of its total potential returns per unit of risk. Hammerson PLC is currently generating about 0.04 per unit of volatility. If you would invest 641,500 in Hammerson PLC on October 22, 2024 and sell it today you would earn a total of 7,500 from holding Hammerson PLC or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
eMedia Holdings Limited vs. Hammerson PLC
Performance |
| Timeline |
| eMedia Holdings |
| Hammerson PLC |
EMedia Holdings and Hammerson PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMedia Holdings and Hammerson PLC
The main advantage of trading using opposite EMedia Holdings and Hammerson PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMedia Holdings 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.| EMedia Holdings vs. Hosken Consolidated Investments | EMedia Holdings vs. Copper 360 | EMedia Holdings vs. Bytes Technology | EMedia Holdings vs. Zeder Investments |
| Hammerson PLC vs. eMedia Holdings Limited | Hammerson PLC vs. Astoria Investments | Hammerson PLC vs. MC Mining | Hammerson PLC vs. Deneb Investments |
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 Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |