Correlation Between Hollywood Bowl and Beijing MediaLimited
Can any of the company-specific risk be diversified away by investing in both Hollywood Bowl and Beijing MediaLimited 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 Beijing MediaLimited 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 Beijing Media, you can compare the effects of market volatilities on Hollywood Bowl and Beijing MediaLimited 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 Beijing MediaLimited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Bowl and Beijing MediaLimited.
Diversification Opportunities for Hollywood Bowl and Beijing MediaLimited
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hollywood and Beijing is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Bowl Group and Beijing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing MediaLimited 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 Beijing MediaLimited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing MediaLimited has no effect on the direction of Hollywood Bowl i.e., Hollywood Bowl and Beijing MediaLimited go up and down completely randomly.
Pair Corralation between Hollywood Bowl and Beijing MediaLimited
Assuming the 90 days horizon Hollywood Bowl Group is expected to under-perform the Beijing MediaLimited. But the stock apears to be less risky and, when comparing its historical volatility, Hollywood Bowl Group is 2.13 times less risky than Beijing MediaLimited. The stock trades about -0.13 of its potential returns per unit of risk. The Beijing Media is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3.55 in Beijing Media on August 25, 2024 and sell it today you would earn a total of 0.20 from holding Beijing Media or generate 5.63% 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. Beijing Media
Performance |
| Timeline |
| Hollywood Bowl Group |
| Beijing MediaLimited |
Hollywood Bowl and Beijing MediaLimited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Bowl and Beijing MediaLimited
The main advantage of trading using opposite Hollywood Bowl and Beijing MediaLimited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Bowl position performs unexpectedly, Beijing MediaLimited 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 Beijing MediaLimited will offset losses from the drop in Beijing MediaLimited's long position.| Hollywood Bowl vs. ANTA Sports Products | Hollywood Bowl vs. Trip Group Limited | Hollywood Bowl vs. Expedia Group | Hollywood Bowl vs. Shimano |
| Beijing MediaLimited vs. The Interpublic Group | Beijing MediaLimited vs. Superior Plus Corp | Beijing MediaLimited vs. NMI Holdings | Beijing MediaLimited vs. Origin Agritech |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |