Correlation Between Hammerson Plc and Scentre
Can any of the company-specific risk be diversified away by investing in both Hammerson Plc and Scentre 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 Scentre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hammerson plc and Scentre Group, you can compare the effects of market volatilities on Hammerson Plc and Scentre 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 Scentre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hammerson Plc and Scentre.
Diversification Opportunities for Hammerson Plc and Scentre
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hammerson and Scentre is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hammerson plc and Scentre Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scentre 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 Scentre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scentre Group has no effect on the direction of Hammerson Plc i.e., Hammerson Plc and Scentre go up and down completely randomly.
Pair Corralation between Hammerson Plc and Scentre
If you would invest (100.00) in Hammerson plc on February 7, 2024 and sell it today you would earn a total of 100.00 from holding Hammerson plc or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Hammerson plc vs. Scentre Group
Performance |
Timeline |
Hammerson plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Scentre Group |
Hammerson Plc and Scentre Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hammerson Plc and Scentre
The main advantage of trading using opposite Hammerson Plc and Scentre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hammerson Plc position performs unexpectedly, Scentre 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 Scentre will offset losses from the drop in Scentre's long position.Hammerson Plc vs. Realty Income Corp | Hammerson Plc vs. Federal Realty Investment | Hammerson Plc vs. Macerich Company | Hammerson Plc vs. National Retail Properties |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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