Correlation Between Hollywood Bowl and NEXANS
Can any of the company-specific risk be diversified away by investing in both Hollywood Bowl and NEXANS 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 NEXANS 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 NEXANS, you can compare the effects of market volatilities on Hollywood Bowl and NEXANS 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 NEXANS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Bowl and NEXANS.
Diversification Opportunities for Hollywood Bowl and NEXANS
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hollywood and NEXANS is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Bowl Group and NEXANS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXANS 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 NEXANS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXANS has no effect on the direction of Hollywood Bowl i.e., Hollywood Bowl and NEXANS go up and down completely randomly.
Pair Corralation between Hollywood Bowl and NEXANS
Assuming the 90 days horizon Hollywood Bowl Group is expected to generate 0.9 times more return on investment than NEXANS. However, Hollywood Bowl Group is 1.11 times less risky than NEXANS. It trades about -0.05 of its potential returns per unit of risk. NEXANS is currently generating about -0.05 per unit of risk. If you would invest 372.00 in Hollywood Bowl Group on October 25, 2024 and sell it today you would lose (52.00) from holding Hollywood Bowl Group or give up 13.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Hollywood Bowl Group vs. NEXANS
Performance |
| Timeline |
| Hollywood Bowl Group |
| NEXANS |
Hollywood Bowl and NEXANS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Bowl and NEXANS
The main advantage of trading using opposite Hollywood Bowl and NEXANS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Bowl position performs unexpectedly, NEXANS 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 NEXANS will offset losses from the drop in NEXANS's long position.| Hollywood Bowl vs. PACIFIC ONLINE | Hollywood Bowl vs. SALESFORCE INC CDR | Hollywood Bowl vs. GungHo Online Entertainment | Hollywood Bowl vs. INSURANCE AUST GRP |
| NEXANS vs. Endeavour Mining PLC | NEXANS vs. Harmony Gold Mining | NEXANS vs. GALENA MINING LTD | NEXANS vs. Monument Mining Limited |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |