Correlation Between Hollywood Bowl and KRISPY KREME
Can any of the company-specific risk be diversified away by investing in both Hollywood Bowl and KRISPY KREME 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 KRISPY KREME 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 KRISPY KREME DL 01, you can compare the effects of market volatilities on Hollywood Bowl and KRISPY KREME 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 KRISPY KREME. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Bowl and KRISPY KREME.
Diversification Opportunities for Hollywood Bowl and KRISPY KREME
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hollywood and KRISPY is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Bowl Group and KRISPY KREME DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRISPY KREME DL 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 KRISPY KREME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRISPY KREME DL has no effect on the direction of Hollywood Bowl i.e., Hollywood Bowl and KRISPY KREME go up and down completely randomly.
Pair Corralation between Hollywood Bowl and KRISPY KREME
Assuming the 90 days horizon Hollywood Bowl Group is expected to generate 0.4 times more return on investment than KRISPY KREME. However, Hollywood Bowl Group is 2.52 times less risky than KRISPY KREME. It trades about -0.02 of its potential returns per unit of risk. KRISPY KREME DL 01 is currently generating about -0.17 per unit of risk. If you would invest 326.00 in Hollywood Bowl Group on November 30, 2024 and sell it today you would lose (8.00) from holding Hollywood Bowl Group or give up 2.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hollywood Bowl Group vs. KRISPY KREME DL 01
Performance |
| Timeline |
| Hollywood Bowl Group |
| KRISPY KREME DL |
Hollywood Bowl and KRISPY KREME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Bowl and KRISPY KREME
The main advantage of trading using opposite Hollywood Bowl and KRISPY KREME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Bowl position performs unexpectedly, KRISPY KREME 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 KRISPY KREME will offset losses from the drop in KRISPY KREME's long position.| Hollywood Bowl vs. AGNC Investment Corp | Hollywood Bowl vs. Entravision Communications | Hollywood Bowl vs. Singapore Telecommunications Limited | Hollywood Bowl vs. TELECOM PLUS |
| KRISPY KREME vs. NAKED WINES PLC | KRISPY KREME vs. GBS Software AG | KRISPY KREME vs. INTERSHOP Communications Aktiengesellschaft | KRISPY KREME vs. Infrastrutture Wireless Italiane |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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