Correlation Between Sancus Lending and Hammerson PLC
Can any of the company-specific risk be diversified away by investing in both Sancus Lending and Hammerson PLC 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 Sancus Lending and Hammerson PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sancus Lending Group and Hammerson PLC, you can compare the effects of market volatilities on Sancus Lending and Hammerson PLC 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 Sancus Lending with a short position of Hammerson PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sancus Lending and Hammerson PLC.
Diversification Opportunities for Sancus Lending and Hammerson PLC
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sancus and Hammerson is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sancus Lending Group and Hammerson PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hammerson PLC and Sancus Lending 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 Sancus Lending Group are associated (or correlated) with Hammerson PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hammerson PLC has no effect on the direction of Sancus Lending i.e., Sancus Lending and Hammerson PLC go up and down completely randomly.
Pair Corralation between Sancus Lending and Hammerson PLC
Assuming the 90 days trading horizon Sancus Lending is expected to generate 10.11 times less return on investment than Hammerson PLC. But when comparing it to its historical volatility, Sancus Lending Group is 4.64 times less risky than Hammerson PLC. It trades about 0.02 of its potential returns per unit of risk. Hammerson PLC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 30,400 in Hammerson PLC on November 19, 2024 and sell it today you would lose (1,120) from holding Hammerson PLC or give up 3.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sancus Lending Group vs. Hammerson PLC
Performance |
| Timeline |
| Sancus Lending Group |
| Hammerson PLC |
Sancus Lending and Hammerson PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sancus Lending and Hammerson PLC
The main advantage of trading using opposite Sancus Lending and Hammerson PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sancus Lending position performs unexpectedly, Hammerson PLC 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 Hammerson PLC will offset losses from the drop in Hammerson PLC's long position.| Sancus Lending vs. PureTech Health plc | Sancus Lending vs. Eco Animal Health | Sancus Lending vs. Travel Leisure Co | Sancus Lending vs. Target Healthcare REIT |
| Hammerson PLC vs. InterContinental Hotels Group | Hammerson PLC vs. SBM Offshore NV | Hammerson PLC vs. Cornish Metals | Hammerson PLC vs. Europa 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |