Correlation Between Dream Industrial and Hammond Power
Can any of the company-specific risk be diversified away by investing in both Dream Industrial and Hammond Power 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 Dream Industrial and Hammond Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dream Industrial Real and Hammond Power Solutions, you can compare the effects of market volatilities on Dream Industrial and Hammond Power 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 Dream Industrial with a short position of Hammond Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dream Industrial and Hammond Power.
Diversification Opportunities for Dream Industrial and Hammond Power
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dream and Hammond is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Dream Industrial Real and Hammond Power Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hammond Power Solutions and Dream Industrial 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 Dream Industrial Real are associated (or correlated) with Hammond Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hammond Power Solutions has no effect on the direction of Dream Industrial i.e., Dream Industrial and Hammond Power go up and down completely randomly.
Pair Corralation between Dream Industrial and Hammond Power
Assuming the 90 days trading horizon Dream Industrial Real is expected to under-perform the Hammond Power. But the stock apears to be less risky and, when comparing its historical volatility, Dream Industrial Real is 4.6 times less risky than Hammond Power. The stock trades about -0.01 of its potential returns per unit of risk. The Hammond Power Solutions is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 12,224 in Hammond Power Solutions on September 8, 2025 and sell it today you would earn a total of 4,915 from holding Hammond Power Solutions or generate 40.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dream Industrial Real vs. Hammond Power Solutions
Performance |
| Timeline |
| Dream Industrial Real |
| Hammond Power Solutions |
Dream Industrial and Hammond Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dream Industrial and Hammond Power
The main advantage of trading using opposite Dream Industrial and Hammond Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dream Industrial position performs unexpectedly, Hammond Power 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 Hammond Power will offset losses from the drop in Hammond Power's long position.| Dream Industrial vs. Brookfield Investments | Dream Industrial vs. Labrador Iron Ore | Dream Industrial vs. Rogers Communications | Dream Industrial vs. Upstart Investments |
| Hammond Power vs. Dream Industrial Real | Hammond Power vs. AGF Management Limited | Hammond Power vs. Nicola Mining | Hammond Power vs. Dream Office Real |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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