Correlation Between XLMedia PLC and Hollywood Bowl
Can any of the company-specific risk be diversified away by investing in both XLMedia PLC and Hollywood Bowl 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 XLMedia PLC and Hollywood Bowl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLMedia PLC and Hollywood Bowl Group, you can compare the effects of market volatilities on XLMedia PLC and Hollywood Bowl 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 XLMedia PLC with a short position of Hollywood Bowl. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and Hollywood Bowl.
Diversification Opportunities for XLMedia PLC and Hollywood Bowl
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XLMedia and Hollywood is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and Hollywood Bowl Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hollywood Bowl Group and XLMedia PLC 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 XLMedia PLC are associated (or correlated) with Hollywood Bowl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hollywood Bowl Group has no effect on the direction of XLMedia PLC i.e., XLMedia PLC and Hollywood Bowl go up and down completely randomly.
Pair Corralation between XLMedia PLC and Hollywood Bowl
Assuming the 90 days horizon XLMedia PLC is expected to generate 1.16 times more return on investment than Hollywood Bowl. However, XLMedia PLC is 1.16 times more volatile than Hollywood Bowl Group. It trades about 0.21 of its potential returns per unit of risk. Hollywood Bowl Group is currently generating about -0.13 per unit of risk. If you would invest 13.00 in XLMedia PLC on August 29, 2024 and sell it today you would earn a total of 1.00 from holding XLMedia PLC or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XLMedia PLC vs. Hollywood Bowl Group
Performance |
| Timeline |
| XLMedia PLC |
| Hollywood Bowl Group |
XLMedia PLC and Hollywood Bowl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and Hollywood Bowl
The main advantage of trading using opposite XLMedia PLC and Hollywood Bowl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia PLC position performs unexpectedly, Hollywood Bowl 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 Hollywood Bowl will offset losses from the drop in Hollywood Bowl's long position.| XLMedia PLC vs. GREENX METALS LTD | XLMedia PLC vs. GEELY AUTOMOBILE | XLMedia PLC vs. Motorcar Parts of | XLMedia PLC vs. Perseus Mining Limited |
| Hollywood Bowl vs. The Home Depot | Hollywood Bowl vs. SHIP HEALTHCARE HLDGINC | Hollywood Bowl vs. KB HOME | Hollywood Bowl vs. Diamondrock Hospitality Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |