Correlation Between Hammerson PLC and JLEN Environmental
Can any of the company-specific risk be diversified away by investing in both Hammerson PLC and JLEN Environmental 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 JLEN Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hammerson PLC and JLEN Environmental Assets, you can compare the effects of market volatilities on Hammerson PLC and JLEN Environmental 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 JLEN Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hammerson PLC and JLEN Environmental.
Diversification Opportunities for Hammerson PLC and JLEN Environmental
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hammerson and JLEN is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Hammerson PLC and JLEN Environmental Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLEN Environmental Assets 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 JLEN Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLEN Environmental Assets has no effect on the direction of Hammerson PLC i.e., Hammerson PLC and JLEN Environmental go up and down completely randomly.
Pair Corralation between Hammerson PLC and JLEN Environmental
Assuming the 90 days trading horizon Hammerson PLC is expected to generate 1.61 times more return on investment than JLEN Environmental. However, Hammerson PLC is 1.61 times more volatile than JLEN Environmental Assets. It trades about 0.04 of its potential returns per unit of risk. JLEN Environmental Assets is currently generating about -0.04 per unit of risk. If you would invest 24,606 in Hammerson PLC on August 25, 2024 and sell it today you would earn a total of 4,234 from holding Hammerson PLC or generate 17.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hammerson PLC vs. JLEN Environmental Assets
Performance |
| Timeline |
| Hammerson PLC |
| JLEN Environmental Assets |
Hammerson PLC and JLEN Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hammerson PLC and JLEN Environmental
The main advantage of trading using opposite Hammerson PLC and JLEN Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hammerson PLC position performs unexpectedly, JLEN Environmental 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 JLEN Environmental will offset losses from the drop in JLEN Environmental's long position.| Hammerson PLC vs. Neometals | Hammerson PLC vs. Coor Service Management | Hammerson PLC vs. Fidelity Sustainable USD | Hammerson PLC vs. Sancus Lending Group |
| JLEN Environmental vs. Vitec Software Group | JLEN Environmental vs. Associated British Foods | JLEN Environmental vs. Ocean Harvest Technology | JLEN Environmental vs. Tyson Foods Cl |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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