Correlation Between Hammerson PLC and Centaur Bci
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By analyzing existing cross correlation between Hammerson PLC and Centaur Bci Balanced, you can compare the effects of market volatilities on Hammerson PLC and Centaur Bci 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 Hammerson PLC with a short position of Centaur Bci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hammerson PLC and Centaur Bci.
Diversification Opportunities for Hammerson PLC and Centaur Bci
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hammerson and Centaur is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hammerson PLC and Centaur Bci Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaur Bci Balanced and Hammerson PLC 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 Hammerson PLC are associated (or correlated) with Centaur Bci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaur Bci Balanced has no effect on the direction of Hammerson PLC i.e., Hammerson PLC and Centaur Bci go up and down completely randomly.
Pair Corralation between Hammerson PLC and Centaur Bci
Assuming the 90 days trading horizon Hammerson PLC is expected to generate 102.54 times more return on investment than Centaur Bci. However, Hammerson PLC is 102.54 times more volatile than Centaur Bci Balanced. It trades about 0.06 of its potential returns per unit of risk. Centaur Bci Balanced is currently generating about 0.13 per unit of risk. If you would invest 64,500 in Hammerson PLC on September 3, 2024 and sell it today you would earn a total of 607,500 from holding Hammerson PLC or generate 941.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.37% |
| Values | Daily Returns |
Hammerson PLC vs. Centaur Bci Balanced
Performance |
| Timeline |
| Hammerson PLC |
| Centaur Bci Balanced |
Hammerson PLC and Centaur Bci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hammerson PLC and Centaur Bci
The main advantage of trading using opposite Hammerson PLC and Centaur Bci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hammerson PLC position performs unexpectedly, Centaur Bci 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 Centaur Bci will offset losses from the drop in Centaur Bci's long position.| Hammerson PLC vs. Datatec | Hammerson PLC vs. Astoria Investments | Hammerson PLC vs. ABSA Bank Limited | Hammerson PLC vs. E Media Holdings |
| Centaur Bci vs. Sasol Ltd Bee | Centaur Bci vs. Sabvest Capital | Centaur Bci vs. Growthpoint Properties | Centaur Bci vs. Coronation Global Equity |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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