Correlation Between Hollywood Bowl and Lenox Pasifik
Can any of the company-specific risk be diversified away by investing in both Hollywood Bowl and Lenox Pasifik 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 Lenox Pasifik 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 Lenox Pasifik Investama, you can compare the effects of market volatilities on Hollywood Bowl and Lenox Pasifik 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 Lenox Pasifik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Bowl and Lenox Pasifik.
Diversification Opportunities for Hollywood Bowl and Lenox Pasifik
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hollywood and Lenox is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Bowl Group and Lenox Pasifik Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lenox Pasifik Investama 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 Lenox Pasifik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lenox Pasifik Investama has no effect on the direction of Hollywood Bowl i.e., Hollywood Bowl and Lenox Pasifik go up and down completely randomly.
Pair Corralation between Hollywood Bowl and Lenox Pasifik
Assuming the 90 days horizon Hollywood Bowl Group is expected to generate 0.14 times more return on investment than Lenox Pasifik. However, Hollywood Bowl Group is 7.36 times less risky than Lenox Pasifik. It trades about 0.26 of its potential returns per unit of risk. Lenox Pasifik Investama is currently generating about -0.1 per unit of risk. If you would invest 376.00 in Hollywood Bowl Group on September 14, 2024 and sell it today you would earn a total of 30.00 from holding Hollywood Bowl Group or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hollywood Bowl Group vs. Lenox Pasifik Investama
Performance |
| Timeline |
| Hollywood Bowl Group |
| Lenox Pasifik Investama |
Hollywood Bowl and Lenox Pasifik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Bowl and Lenox Pasifik
The main advantage of trading using opposite Hollywood Bowl and Lenox Pasifik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Bowl position performs unexpectedly, Lenox Pasifik 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 Lenox Pasifik will offset losses from the drop in Lenox Pasifik's long position.| Hollywood Bowl vs. Superior Plus Corp | Hollywood Bowl vs. SIVERS SEMICONDUCTORS AB | Hollywood Bowl vs. Norsk Hydro ASA | Hollywood Bowl vs. Reliance Steel Aluminum |
| Lenox Pasifik vs. Dave Busters Entertainment | Lenox Pasifik vs. Hollywood Bowl Group | Lenox Pasifik vs. Apollo Investment Corp | Lenox Pasifik vs. TOWNSQUARE MEDIA 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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