Correlation Between Erste Group and Hollywood Bowl
Can any of the company-specific risk be diversified away by investing in both Erste Group 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 Erste Group and Hollywood Bowl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Erste Group Bank and Hollywood Bowl Group, you can compare the effects of market volatilities on Erste Group 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 Erste Group with a short position of Hollywood Bowl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erste Group and Hollywood Bowl.
Diversification Opportunities for Erste Group and Hollywood Bowl
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Erste and Hollywood is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Erste Group Bank 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 Erste Group 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 Erste Group Bank 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 Erste Group i.e., Erste Group and Hollywood Bowl go up and down completely randomly.
Pair Corralation between Erste Group and Hollywood Bowl
Assuming the 90 days trading horizon Erste Group Bank is expected to generate 0.88 times more return on investment than Hollywood Bowl. However, Erste Group Bank is 1.14 times less risky than Hollywood Bowl. It trades about 0.08 of its potential returns per unit of risk. Hollywood Bowl Group is currently generating about 0.05 per unit of risk. If you would invest 5,164 in Erste Group Bank on September 4, 2024 and sell it today you would earn a total of 90.00 from holding Erste Group Bank or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Erste Group Bank vs. Hollywood Bowl Group
Performance |
| Timeline |
| Erste Group Bank |
| Hollywood Bowl Group |
Erste Group and Hollywood Bowl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erste Group and Hollywood Bowl
The main advantage of trading using opposite Erste Group and Hollywood Bowl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erste Group 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.| Erste Group vs. Samsung Electronics Co | Erste Group vs. Samsung Electronics Co | Erste Group vs. Hyundai Motor | Erste Group vs. Toyota Motor Corp |
| Hollywood Bowl vs. Samsung Electronics Co | Hollywood Bowl vs. Samsung Electronics Co | Hollywood Bowl vs. Hyundai Motor | Hollywood Bowl vs. Toyota Motor Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |