Correlation Between Hammerson PLC and Triple Point
Can any of the company-specific risk be diversified away by investing in both Hammerson PLC and Triple Point 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 Triple Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hammerson PLC and Triple Point Social, you can compare the effects of market volatilities on Hammerson PLC and Triple Point 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 Triple Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hammerson PLC and Triple Point.
Diversification Opportunities for Hammerson PLC and Triple Point
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hammerson and Triple is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hammerson PLC and Triple Point Social in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triple Point Social 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 Triple Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triple Point Social has no effect on the direction of Hammerson PLC i.e., Hammerson PLC and Triple Point go up and down completely randomly.
Pair Corralation between Hammerson PLC and Triple Point
Assuming the 90 days trading horizon Hammerson PLC is expected to generate 0.94 times more return on investment than Triple Point. However, Hammerson PLC is 1.06 times less risky than Triple Point. It trades about 0.02 of its potential returns per unit of risk. Triple Point Social is currently generating about -0.1 per unit of risk. If you would invest 29,180 in Hammerson PLC on September 2, 2024 and sell it today you would earn a total of 80.00 from holding Hammerson PLC or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hammerson PLC vs. Triple Point Social
Performance |
| Timeline |
| Hammerson PLC |
| Triple Point Social |
Hammerson PLC and Triple Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hammerson PLC and Triple Point
The main advantage of trading using opposite Hammerson PLC and Triple Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hammerson PLC position performs unexpectedly, Triple Point 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 Triple Point will offset losses from the drop in Triple Point's long position.| Hammerson PLC vs. Derwent London PLC | Hammerson PLC vs. Workspace Group PLC | Hammerson PLC vs. Supermarket Income REIT | Hammerson PLC vs. Diversified Energy |
| Triple Point vs. Endeavour Mining Corp | Triple Point vs. Blackrock World Mining | Triple Point vs. AfriTin Mining | Triple Point vs. Silvercorp Metals |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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