Correlation Between Hammerson PLC and British Land
Can any of the company-specific risk be diversified away by investing in both Hammerson PLC and British Land 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 British Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hammerson PLC and British Land, you can compare the effects of market volatilities on Hammerson PLC and British Land 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 British Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hammerson PLC and British Land.
Diversification Opportunities for Hammerson PLC and British Land
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hammerson and British is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Hammerson PLC and British Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on British Land 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 British Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of British Land has no effect on the direction of Hammerson PLC i.e., Hammerson PLC and British Land go up and down completely randomly.
Pair Corralation between Hammerson PLC and British Land
Assuming the 90 days trading horizon Hammerson PLC is expected to generate 1.11 times less return on investment than British Land. In addition to that, Hammerson PLC is 1.2 times more volatile than British Land. It trades about 0.09 of its total potential returns per unit of risk. British Land is currently generating about 0.12 per unit of volatility. If you would invest 33,920 in British Land on August 25, 2025 and sell it today you would earn a total of 3,560 from holding British Land or generate 10.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hammerson PLC vs. British Land
Performance |
| Timeline |
| Hammerson PLC |
| British Land |
Hammerson PLC and British Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hammerson PLC and British Land
The main advantage of trading using opposite Hammerson PLC and British Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hammerson PLC position performs unexpectedly, British Land 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 British Land will offset losses from the drop in British Land's long position.| Hammerson PLC vs. Gaztransport et Technigaz | Hammerson PLC vs. Smithson Investment Trust | Hammerson PLC vs. The Investment | Hammerson PLC vs. Vietnam Enterprise Investments |
| British Land vs. Panther Metals PLC | British Land vs. Planet Fitness Cl | British Land vs. Golden Metal Resources | British Land vs. Elmos Semiconductor SE |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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