Correlation Between Hollywood Bowl and Media
Can any of the company-specific risk be diversified away by investing in both Hollywood Bowl and Media 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 Media 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 Media and Games, you can compare the effects of market volatilities on Hollywood Bowl and Media 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 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Bowl and Media.
Diversification Opportunities for Hollywood Bowl and Media
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hollywood and Media is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Bowl Group and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games 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 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of Hollywood Bowl i.e., Hollywood Bowl and Media go up and down completely randomly.
Pair Corralation between Hollywood Bowl and Media
Assuming the 90 days horizon Hollywood Bowl Group is expected to generate 0.34 times more return on investment than Media. However, Hollywood Bowl Group is 2.93 times less risky than Media. It trades about -0.01 of its potential returns per unit of risk. Media and Games is currently generating about -0.11 per unit of risk. If you would invest 380.00 in Hollywood Bowl Group on September 1, 2024 and sell it today you would lose (2.00) from holding Hollywood Bowl Group or give up 0.53% 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. Media and Games
Performance |
| Timeline |
| Hollywood Bowl Group |
| Media and Games |
Hollywood Bowl and Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Bowl and Media
The main advantage of trading using opposite Hollywood Bowl and Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Bowl position performs unexpectedly, Media 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 Media will offset losses from the drop in Media's long position.| Hollywood Bowl vs. Li Ning Company | Hollywood Bowl vs. Trip Group Limited | Hollywood Bowl vs. Superior Plus Corp | Hollywood Bowl vs. NMI Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
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