Correlation Between Holiday Entertainment and Macroblock
Can any of the company-specific risk be diversified away by investing in both Holiday Entertainment and Macroblock 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 Holiday Entertainment and Macroblock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Holiday Entertainment Co and Macroblock, you can compare the effects of market volatilities on Holiday Entertainment and Macroblock 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 Holiday Entertainment with a short position of Macroblock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holiday Entertainment and Macroblock.
Diversification Opportunities for Holiday Entertainment and Macroblock
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Holiday and Macroblock is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Holiday Entertainment Co and Macroblock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macroblock and Holiday Entertainment 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 Holiday Entertainment Co are associated (or correlated) with Macroblock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macroblock has no effect on the direction of Holiday Entertainment i.e., Holiday Entertainment and Macroblock go up and down completely randomly.
Pair Corralation between Holiday Entertainment and Macroblock
Assuming the 90 days trading horizon Holiday Entertainment Co is expected to generate 0.72 times more return on investment than Macroblock. However, Holiday Entertainment Co is 1.39 times less risky than Macroblock. It trades about 0.04 of its potential returns per unit of risk. Macroblock is currently generating about -0.03 per unit of risk. If you would invest 6,630 in Holiday Entertainment Co on December 4, 2024 and sell it today you would earn a total of 1,420 from holding Holiday Entertainment Co or generate 21.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holiday Entertainment Co vs. Macroblock
Performance |
| Timeline |
| Holiday Entertainment |
| Macroblock |
Holiday Entertainment and Macroblock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holiday Entertainment and Macroblock
The main advantage of trading using opposite Holiday Entertainment and Macroblock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holiday Entertainment position performs unexpectedly, Macroblock 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 Macroblock will offset losses from the drop in Macroblock's long position.| Holiday Entertainment vs. Yulon Finance Corp | Holiday Entertainment vs. Taiwan Secom Co | Holiday Entertainment vs. Taiwan Shin Kong | Holiday Entertainment vs. Formosa International Hotels |
| Macroblock vs. Hi Lai Foods Co | Macroblock vs. Chernan Metal Industrial | Macroblock vs. Tsang Yow Industrial | Macroblock vs. Unique Optical Industrial |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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