Correlation Between Hollywood Bowl and Impinj
Can any of the company-specific risk be diversified away by investing in both Hollywood Bowl and Impinj 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 Hollywood Bowl and Impinj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hollywood Bowl Group and Impinj Inc, you can compare the effects of market volatilities on Hollywood Bowl and Impinj 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 Hollywood Bowl with a short position of Impinj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Bowl and Impinj.
Diversification Opportunities for Hollywood Bowl and Impinj
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hollywood and Impinj is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Bowl Group and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and Hollywood Bowl 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 Hollywood Bowl Group are associated (or correlated) with Impinj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impinj Inc has no effect on the direction of Hollywood Bowl i.e., Hollywood Bowl and Impinj go up and down completely randomly.
Pair Corralation between Hollywood Bowl and Impinj
Assuming the 90 days horizon Hollywood Bowl is expected to generate 3.83 times less return on investment than Impinj. But when comparing it to its historical volatility, Hollywood Bowl Group is 1.82 times less risky than Impinj. It trades about 0.06 of its potential returns per unit of risk. Impinj Inc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 6,302 in Impinj Inc on September 1, 2024 and sell it today you would earn a total of 11,513 from holding Impinj Inc or generate 182.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hollywood Bowl Group vs. Impinj Inc
Performance |
| Timeline |
| Hollywood Bowl Group |
| Impinj Inc |
Hollywood Bowl and Impinj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Bowl and Impinj
The main advantage of trading using opposite Hollywood Bowl and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Bowl position performs unexpectedly, Impinj 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 Impinj will offset losses from the drop in Impinj's long position.| Hollywood Bowl vs. Li Ning Company | Hollywood Bowl vs. Trip Group Limited | Hollywood Bowl vs. Superior Plus Corp | Hollywood Bowl vs. NMI Holdings |
| Impinj vs. British American Tobacco | Impinj vs. GUARDANT HEALTH CL | Impinj vs. United Insurance Holdings | Impinj vs. SBI Insurance Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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