Correlation Between Hollywood Bowl and Ambev SA
Can any of the company-specific risk be diversified away by investing in both Hollywood Bowl and Ambev SA 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 Ambev SA 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 Ambev SA, you can compare the effects of market volatilities on Hollywood Bowl and Ambev SA 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 Ambev SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Bowl and Ambev SA.
Diversification Opportunities for Hollywood Bowl and Ambev SA
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hollywood and Ambev is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Bowl Group and Ambev SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambev SA 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 Ambev SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambev SA has no effect on the direction of Hollywood Bowl i.e., Hollywood Bowl and Ambev SA go up and down completely randomly.
Pair Corralation between Hollywood Bowl and Ambev SA
Assuming the 90 days horizon Hollywood Bowl Group is expected to generate 0.99 times more return on investment than Ambev SA. However, Hollywood Bowl Group is 1.01 times less risky than Ambev SA. It trades about 0.04 of its potential returns per unit of risk. Ambev SA is currently generating about 0.0 per unit of risk. If you would invest 258.00 in Hollywood Bowl Group on September 25, 2024 and sell it today you would earn a total of 92.00 from holding Hollywood Bowl Group or generate 35.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Hollywood Bowl Group vs. Ambev SA
Performance |
| Timeline |
| Hollywood Bowl Group |
| Ambev SA |
Hollywood Bowl and Ambev SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Bowl and Ambev SA
The main advantage of trading using opposite Hollywood Bowl and Ambev SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Bowl position performs unexpectedly, Ambev SA 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 Ambev SA will offset losses from the drop in Ambev SA's long position.| Hollywood Bowl vs. Booking Holdings | Hollywood Bowl vs. ANTA Sports Products | Hollywood Bowl vs. Li Ning Company | Hollywood Bowl vs. SHIMANO INC UNSPADR10 |
| Ambev SA vs. FOMECONMEXSAB DCV UTS | Ambev SA vs. Heineken NV | Ambev SA vs. HEINEKEN SP ADR | Ambev SA vs. Heineken Holding NV |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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