Correlation Between Aptamer Group and Hollywood Bowl
Can any of the company-specific risk be diversified away by investing in both Aptamer Group 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 Aptamer Group and Hollywood Bowl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aptamer Group PLC and Hollywood Bowl Group, you can compare the effects of market volatilities on Aptamer Group 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 Aptamer Group with a short position of Hollywood Bowl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptamer Group and Hollywood Bowl.
Diversification Opportunities for Aptamer Group and Hollywood Bowl
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aptamer and Hollywood is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Aptamer Group 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 Aptamer Group 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 Aptamer Group 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 Aptamer Group i.e., Aptamer Group and Hollywood Bowl go up and down completely randomly.
Pair Corralation between Aptamer Group and Hollywood Bowl
Assuming the 90 days trading horizon Aptamer Group PLC is expected to generate 3.23 times more return on investment than Hollywood Bowl. However, Aptamer Group is 3.23 times more volatile than Hollywood Bowl Group. It trades about 0.24 of its potential returns per unit of risk. Hollywood Bowl Group is currently generating about -0.09 per unit of risk. If you would invest 35.00 in Aptamer Group PLC on October 21, 2024 and sell it today you would earn a total of 7.00 from holding Aptamer Group PLC or generate 20.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aptamer Group PLC vs. Hollywood Bowl Group
Performance |
Timeline |
Aptamer Group PLC |
Hollywood Bowl Group |
Aptamer Group and Hollywood Bowl Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aptamer Group and Hollywood Bowl
The main advantage of trading using opposite Aptamer Group and Hollywood Bowl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aptamer Group 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.Aptamer Group vs. Samsung Electronics Co | Aptamer Group vs. Samsung Electronics Co | Aptamer Group vs. Toyota Motor Corp | Aptamer Group vs. Reliance Industries Ltd |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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