Correlation Between Schroder Real and Hammerson PLC
Can any of the company-specific risk be diversified away by investing in both Schroder Real 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 Schroder Real and Hammerson PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schroder Real Estate and Hammerson PLC, you can compare the effects of market volatilities on Schroder Real 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 Schroder Real with a short position of Hammerson PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schroder Real and Hammerson PLC.
Diversification Opportunities for Schroder Real and Hammerson PLC
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Schroder and Hammerson is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Schroder Real Estate and Hammerson PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hammerson PLC and Schroder Real 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 Schroder Real Estate 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 Schroder Real i.e., Schroder Real and Hammerson PLC go up and down completely randomly.
Pair Corralation between Schroder Real and Hammerson PLC
Assuming the 90 days trading horizon Schroder Real Estate is expected to generate 0.83 times more return on investment than Hammerson PLC. However, Schroder Real Estate is 1.2 times less risky than Hammerson PLC. It trades about 0.11 of its potential returns per unit of risk. Hammerson PLC is currently generating about 0.02 per unit of risk. If you would invest 4,143 in Schroder Real Estate on September 1, 2024 and sell it today you would earn a total of 847.00 from holding Schroder Real Estate or generate 20.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.23% |
| Values | Daily Returns |
Schroder Real Estate vs. Hammerson PLC
Performance |
| Timeline |
| Schroder Real Estate |
| Hammerson PLC |
Schroder Real and Hammerson PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schroder Real and Hammerson PLC
The main advantage of trading using opposite Schroder Real and Hammerson PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schroder Real 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.| Schroder Real vs. Hammerson PLC | Schroder Real vs. Workspace Group PLC | Schroder Real vs. Supermarket Income REIT | Schroder Real vs. Diversified Energy |
| Hammerson PLC vs. JD Sports Fashion | Hammerson PLC vs. Livermore Investments Group | Hammerson PLC vs. Lowland Investment Co | Hammerson PLC vs. Bloomsbury Publishing Plc |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |