Correlation Between Jacquet Metal and Hollywood Bowl
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Hollywood Bowl 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 Jacquet Metal and Hollywood Bowl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacquet Metal Service and Hollywood Bowl Group, you can compare the effects of market volatilities on Jacquet Metal and Hollywood Bowl 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 Jacquet Metal with a short position of Hollywood Bowl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Hollywood Bowl.
Diversification Opportunities for Jacquet Metal and Hollywood Bowl
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jacquet and Hollywood is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Hollywood Bowl Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hollywood Bowl Group and Jacquet Metal 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 Jacquet Metal Service are associated (or correlated) with Hollywood Bowl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hollywood Bowl Group has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Hollywood Bowl go up and down completely randomly.
Pair Corralation between Jacquet Metal and Hollywood Bowl
Assuming the 90 days trading horizon Jacquet Metal is expected to generate 1.53 times less return on investment than Hollywood Bowl. But when comparing it to its historical volatility, Jacquet Metal Service is 1.09 times less risky than Hollywood Bowl. It trades about 0.02 of its potential returns per unit of risk. Hollywood Bowl Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 24,754 in Hollywood Bowl Group on October 16, 2024 and sell it today you would earn a total of 3,396 from holding Hollywood Bowl Group or generate 13.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Jacquet Metal Service vs. Hollywood Bowl Group
Performance |
| Timeline |
| Jacquet Metal Service |
| Hollywood Bowl Group |
Jacquet Metal and Hollywood Bowl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Hollywood Bowl
The main advantage of trading using opposite Jacquet Metal and Hollywood Bowl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Hollywood Bowl 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 Hollywood Bowl will offset losses from the drop in Hollywood Bowl's long position.| Jacquet Metal vs. EJF Investments | Jacquet Metal vs. Optima Health plc | Jacquet Metal vs. Canadian General Investments | Jacquet Metal vs. Cardinal Health |
| Hollywood Bowl vs. Bisichi Mining PLC | Hollywood Bowl vs. Metro Bank PLC | Hollywood Bowl vs. Hochschild Mining plc | Hollywood Bowl vs. Coeur Mining |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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