Correlation Between Hammerson PLC and Sancus Lending
Can any of the company-specific risk be diversified away by investing in both Hammerson PLC and Sancus Lending 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 Sancus Lending into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hammerson PLC and Sancus Lending Group, you can compare the effects of market volatilities on Hammerson PLC and Sancus Lending 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 Sancus Lending. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hammerson PLC and Sancus Lending.
Diversification Opportunities for Hammerson PLC and Sancus Lending
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hammerson and Sancus is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Hammerson PLC and Sancus Lending Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sancus Lending Group 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 Sancus Lending. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sancus Lending Group has no effect on the direction of Hammerson PLC i.e., Hammerson PLC and Sancus Lending go up and down completely randomly.
Pair Corralation between Hammerson PLC and Sancus Lending
Assuming the 90 days trading horizon Hammerson PLC is expected to generate 0.25 times more return on investment than Sancus Lending. However, Hammerson PLC is 4.0 times less risky than Sancus Lending. It trades about 0.0 of its potential returns per unit of risk. Sancus Lending Group is currently generating about -0.07 per unit of risk. If you would invest 28,440 in Hammerson PLC on August 28, 2024 and sell it today you would lose (160.00) from holding Hammerson PLC or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hammerson PLC vs. Sancus Lending Group
Performance |
| Timeline |
| Hammerson PLC |
| Sancus Lending Group |
Hammerson PLC and Sancus Lending Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hammerson PLC and Sancus Lending
The main advantage of trading using opposite Hammerson PLC and Sancus Lending positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hammerson PLC position performs unexpectedly, Sancus Lending 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 Sancus Lending will offset losses from the drop in Sancus Lending's long position.| Hammerson PLC vs. Derwent London PLC | Hammerson PLC vs. Workspace Group PLC | Hammerson PLC vs. Diversified Energy |
| Sancus Lending vs. Catalyst Media Group | Sancus Lending vs. Oncimmune Holdings plc | Sancus Lending vs. Invesco Health Care | Sancus Lending vs. Coor Service Management |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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