Correlation Between Lundin Mining and Hollywood Bowl
Can any of the company-specific risk be diversified away by investing in both Lundin Mining 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 Lundin Mining and Hollywood Bowl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Mining Corp and Hollywood Bowl Group, you can compare the effects of market volatilities on Lundin Mining 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 Lundin Mining with a short position of Hollywood Bowl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Mining and Hollywood Bowl.
Diversification Opportunities for Lundin Mining and Hollywood Bowl
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lundin and Hollywood is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Mining Corp 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 Lundin Mining 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 Lundin Mining Corp 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 Lundin Mining i.e., Lundin Mining and Hollywood Bowl go up and down completely randomly.
Pair Corralation between Lundin Mining and Hollywood Bowl
Assuming the 90 days trading horizon Lundin Mining Corp is expected to generate 1.51 times more return on investment than Hollywood Bowl. However, Lundin Mining is 1.51 times more volatile than Hollywood Bowl Group. It trades about 0.04 of its potential returns per unit of risk. Hollywood Bowl Group is currently generating about 0.02 per unit of risk. If you would invest 6,667 in Lundin Mining Corp on October 14, 2024 and sell it today you would earn a total of 3,168 from holding Lundin Mining Corp or generate 47.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lundin Mining Corp vs. Hollywood Bowl Group
Performance |
| Timeline |
| Lundin Mining Corp |
| Hollywood Bowl Group |
Lundin Mining and Hollywood Bowl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Mining and Hollywood Bowl
The main advantage of trading using opposite Lundin Mining and Hollywood Bowl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Mining 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.| Lundin Mining vs. DFS Furniture PLC | Lundin Mining vs. Gaztransport et Technigaz | Lundin Mining vs. American Homes 4 | Lundin Mining vs. International Consolidated Airlines |
| Hollywood Bowl vs. Cornish Metals | Hollywood Bowl vs. Lundin Mining Corp | Hollywood Bowl vs. Livermore Investments Group | Hollywood Bowl vs. First Class Metals |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |