Correlation Between Hammerson PLC and Resilient Property
Can any of the company-specific risk be diversified away by investing in both Hammerson PLC and Resilient Property 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 Hammerson PLC and Resilient Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hammerson PLC and Resilient Property Income, you can compare the effects of market volatilities on Hammerson PLC and Resilient Property 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 Resilient Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hammerson PLC and Resilient Property.
Diversification Opportunities for Hammerson PLC and Resilient Property
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hammerson and Resilient is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Hammerson PLC and Resilient Property Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Resilient Property Income 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 Resilient Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Resilient Property Income has no effect on the direction of Hammerson PLC i.e., Hammerson PLC and Resilient Property go up and down completely randomly.
Pair Corralation between Hammerson PLC and Resilient Property
Assuming the 90 days trading horizon Hammerson PLC is expected to under-perform the Resilient Property. But the stock apears to be less risky and, when comparing its historical volatility, Hammerson PLC is 1.05 times less risky than Resilient Property. The stock trades about -0.06 of its potential returns per unit of risk. The Resilient Property Income is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 566,900 in Resilient Property Income on September 4, 2024 and sell it today you would earn a total of 30,800 from holding Resilient Property Income or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hammerson PLC vs. Resilient Property Income
Performance |
| Timeline |
| Hammerson PLC |
| Resilient Property Income |
Hammerson PLC and Resilient Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hammerson PLC and Resilient Property
The main advantage of trading using opposite Hammerson PLC and Resilient Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hammerson PLC position performs unexpectedly, Resilient Property 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 Resilient Property will offset losses from the drop in Resilient Property's long position.| Hammerson PLC vs. Resilient Property Income | Hammerson PLC vs. Vukile Property | Hammerson PLC vs. Sasol Ltd Bee | Hammerson PLC vs. Centaur Bci Balanced |
| Resilient Property vs. Vukile Property | Resilient Property vs. Sasol Ltd Bee | Resilient Property vs. Centaur Bci Balanced | Resilient Property vs. Sabvest Capital |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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