Correlation Between Macroblock and Holiday Entertainment
Can any of the company-specific risk be diversified away by investing in both Macroblock and Holiday Entertainment 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 Macroblock and Holiday Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macroblock and Holiday Entertainment Co, you can compare the effects of market volatilities on Macroblock and Holiday Entertainment 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 Macroblock with a short position of Holiday Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macroblock and Holiday Entertainment.
Diversification Opportunities for Macroblock and Holiday Entertainment
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Macroblock and Holiday is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Macroblock and Holiday Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holiday Entertainment and Macroblock 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 Macroblock are associated (or correlated) with Holiday Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holiday Entertainment has no effect on the direction of Macroblock i.e., Macroblock and Holiday Entertainment go up and down completely randomly.
Pair Corralation between Macroblock and Holiday Entertainment
Assuming the 90 days trading horizon Macroblock is expected to under-perform the Holiday Entertainment. In addition to that, Macroblock is 2.08 times more volatile than Holiday Entertainment Co. It trades about -0.07 of its total potential returns per unit of risk. Holiday Entertainment Co is currently generating about -0.07 per unit of volatility. If you would invest 9,300 in Holiday Entertainment Co on September 14, 2024 and sell it today you would lose (1,350) from holding Holiday Entertainment Co or give up 14.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macroblock vs. Holiday Entertainment Co
Performance |
| Timeline |
| Macroblock |
| Holiday Entertainment |
Macroblock and Holiday Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macroblock and Holiday Entertainment
The main advantage of trading using opposite Macroblock and Holiday Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macroblock position performs unexpectedly, Holiday Entertainment 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 Holiday Entertainment will offset losses from the drop in Holiday Entertainment's long position.| Macroblock vs. Holiday Entertainment Co | Macroblock vs. U Media Communications | Macroblock vs. Compal Broadband Networks | Macroblock vs. Asia Metal Industries |
| Holiday Entertainment vs. Feng Tay Enterprises | Holiday Entertainment vs. Ruentex Development Co | Holiday Entertainment vs. WiseChip Semiconductor | Holiday Entertainment vs. Novatek Microelectronics Corp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| 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 | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |