Correlation Between Hammerson Plc and Simon Property

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Hammerson Plc and Simon Property 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 Simon Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hammerson Plc Ord and Simon Property Group, you can compare the effects of market volatilities on Hammerson Plc and Simon Property 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 Simon Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hammerson Plc and Simon Property.

Diversification Opportunities for Hammerson Plc and Simon Property

0.89
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Hammerson and Simon is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hammerson Plc Ord and Simon Property Group in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Simon Property 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 Ord are associated (or correlated) with Simon Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simon Property Group has no effect on the direction of Hammerson Plc i.e., Hammerson Plc and Simon Property go up and down completely randomly.

Pair Corralation between Hammerson Plc and Simon Property

Assuming the 90 days horizon Hammerson Plc Ord is expected to under-perform the Simon Property. In addition to that, Hammerson Plc is 2.41 times more volatile than Simon Property Group. It trades about -0.01 of its total potential returns per unit of risk. Simon Property Group is currently generating about 0.06 per unit of volatility. If you would invest  5,658  in Simon Property Group on February 16, 2022 and sell it today you would earn a total of  6,029  from holding Simon Property Group or generate 106.56% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Hammerson Plc Ord  vs.  Simon Property Group

 Performance (%) 
      Timeline 
Hammerson Plc Ord 
Hammerson Performance
0 of 100
Over the last 90 days Hammerson Plc Ord has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in June 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Hammerson Price Channel

Simon Property Group 
Simon Performance
0 of 100
Over the last 90 days Simon Property Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in June 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Simon Price Channel

Hammerson Plc and Simon Property Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Hammerson Plc and Simon Property

The main advantage of trading using opposite Hammerson Plc and Simon Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hammerson Plc position performs unexpectedly, Simon Property 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 Simon Property will offset losses from the drop in Simon Property's long position.
The idea behind Hammerson Plc Ord and Simon Property Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Piotroski F Score module to get Piotroski F Score based on binary analysis strategy of nine different fundamentals.

Other Complementary Tools

Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go