Correlation Between Hollywood Bowl and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Hollywood Bowl and GRIFFIN MINING 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 GRIFFIN MINING 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 GRIFFIN MINING LTD, you can compare the effects of market volatilities on Hollywood Bowl and GRIFFIN MINING 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 GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Bowl and GRIFFIN MINING.
Diversification Opportunities for Hollywood Bowl and GRIFFIN MINING
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hollywood and GRIFFIN is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Bowl Group and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD 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 GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of Hollywood Bowl i.e., Hollywood Bowl and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Hollywood Bowl and GRIFFIN MINING
Assuming the 90 days horizon Hollywood Bowl is expected to generate 2.08 times less return on investment than GRIFFIN MINING. But when comparing it to its historical volatility, Hollywood Bowl Group is 1.17 times less risky than GRIFFIN MINING. It trades about 0.05 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 80.00 in GRIFFIN MINING LTD on August 31, 2024 and sell it today you would earn a total of 90.00 from holding GRIFFIN MINING LTD or generate 112.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hollywood Bowl Group vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| Hollywood Bowl Group |
| GRIFFIN MINING LTD |
Hollywood Bowl and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Bowl and GRIFFIN MINING
The main advantage of trading using opposite Hollywood Bowl and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Bowl position performs unexpectedly, GRIFFIN MINING 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 GRIFFIN MINING will offset losses from the drop in GRIFFIN MINING's long position.| Hollywood Bowl vs. MIRAMAR HOTEL INV | Hollywood Bowl vs. INTERCONT HOTELS | Hollywood Bowl vs. Summit Hotel Properties | Hollywood Bowl vs. NXP Semiconductors NV |
| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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