Correlation Between Jumia Technologies and Hammerson Plc
Can any of the company-specific risk be diversified away by investing in both Jumia Technologies 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 Jumia Technologies and Hammerson Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jumia Technologies AG and Hammerson plc, you can compare the effects of market volatilities on Jumia Technologies 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 Jumia Technologies with a short position of Hammerson Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jumia Technologies and Hammerson Plc.
Diversification Opportunities for Jumia Technologies and Hammerson Plc
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jumia and Hammerson is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Jumia Technologies AG and Hammerson plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hammerson plc and Jumia Technologies 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 Jumia Technologies AG 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 Jumia Technologies i.e., Jumia Technologies and Hammerson Plc go up and down completely randomly.
Pair Corralation between Jumia Technologies and Hammerson Plc
Given the investment horizon of 90 days Jumia Technologies is expected to generate 4.42 times less return on investment than Hammerson Plc. In addition to that, Jumia Technologies is 1.21 times more volatile than Hammerson plc. It trades about 0.0 of its total potential returns per unit of risk. Hammerson plc is currently generating about 0.03 per unit of volatility. If you would invest 33.00 in Hammerson plc on January 20, 2024 and sell it today you would earn a total of 1.00 from holding Hammerson plc or generate 3.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 86.26% |
Values | Daily Returns |
Jumia Technologies AG vs. Hammerson plc
Performance |
Timeline |
Jumia Technologies |
Hammerson plc |
Jumia Technologies and Hammerson Plc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jumia Technologies and Hammerson Plc
The main advantage of trading using opposite Jumia Technologies and Hammerson Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jumia Technologies 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.Jumia Technologies vs. Shoe Carnival | Jumia Technologies vs. Hibbett Sports | Jumia Technologies vs. Citi Trends | Jumia Technologies vs. Zumiez Inc |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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