Correlation Between British Land and British Land

Can any of the company-specific risk be diversified away by investing in both British Land 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 British Land and British Land into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between British Land and British Land, you can compare the effects of market volatilities on British Land 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 British Land with a short position of British Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of British Land and British Land.

Diversification Opportunities for British Land and British Land

0.0

Correlation Coefficient

British Land  British Land

Pay attention - limited upside

The 3 months correlation between British and British is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding British Land and British Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on British Land and British Land 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 British Land 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 British Land i.e., British Land and British Land go up and down completely randomly.

Pair Corralation between British Land and British Land

If you would invest  445.00  in British Land on December 30, 2024 and sell it today you would earn a total of  36.00  from holding British Land or generate 8.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

British Land  vs.  British Land

British Land

Risk-Adjusted Performance

Very Weak

Over the last 90 days British Land has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, British Land is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

British Land

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in British Land are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, British Land may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with British Land and British Land

The main advantage of trading using opposite British Land and British Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if British Land 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.

The idea behind British Land and British Land 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.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.