Correlation Between Axway Software and Hollywood Bowl
Can any of the company-specific risk be diversified away by investing in both Axway Software 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 Axway Software and Hollywood Bowl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axway Software SA and Hollywood Bowl Group, you can compare the effects of market volatilities on Axway Software 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 Axway Software with a short position of Hollywood Bowl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axway Software and Hollywood Bowl.
Diversification Opportunities for Axway Software and Hollywood Bowl
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Axway and Hollywood is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Axway Software SA 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 Axway Software 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 Axway Software SA 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 Axway Software i.e., Axway Software and Hollywood Bowl go up and down completely randomly.
Pair Corralation between Axway Software and Hollywood Bowl
Assuming the 90 days trading horizon Axway Software SA is expected to generate 0.52 times more return on investment than Hollywood Bowl. However, Axway Software SA is 1.91 times less risky than Hollywood Bowl. It trades about -0.14 of its potential returns per unit of risk. Hollywood Bowl Group is currently generating about -0.18 per unit of risk. If you would invest 2,750 in Axway Software SA on October 30, 2024 and sell it today you would lose (180.00) from holding Axway Software SA or give up 6.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axway Software SA vs. Hollywood Bowl Group
Performance |
| Timeline |
| Axway Software SA |
| Hollywood Bowl Group |
Axway Software and Hollywood Bowl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axway Software and Hollywood Bowl
The main advantage of trading using opposite Axway Software and Hollywood Bowl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axway Software 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.| Axway Software vs. TOMBADOR IRON LTD | Axway Software vs. CHAMPION IRON | Axway Software vs. STRAYER EDUCATION | Axway Software vs. IDP EDUCATION LTD |
| Hollywood Bowl vs. QINGCI GAMES INC | Hollywood Bowl vs. FRACTAL GAMING GROUP | Hollywood Bowl vs. Scientific Games | Hollywood Bowl vs. Boyd Gaming |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |