Correlation Between Asiamet Resources and Hollywood Bowl
Can any of the company-specific risk be diversified away by investing in both Asiamet Resources 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 Asiamet Resources and Hollywood Bowl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asiamet Resources Limited and Hollywood Bowl Group, you can compare the effects of market volatilities on Asiamet Resources 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 Asiamet Resources with a short position of Hollywood Bowl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asiamet Resources and Hollywood Bowl.
Diversification Opportunities for Asiamet Resources and Hollywood Bowl
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Asiamet and Hollywood is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Asiamet Resources Limited 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 Asiamet Resources 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 Asiamet Resources Limited 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 Asiamet Resources i.e., Asiamet Resources and Hollywood Bowl go up and down completely randomly.
Pair Corralation between Asiamet Resources and Hollywood Bowl
Assuming the 90 days trading horizon Asiamet Resources Limited is expected to under-perform the Hollywood Bowl. In addition to that, Asiamet Resources is 2.18 times more volatile than Hollywood Bowl Group. It trades about -0.02 of its total potential returns per unit of risk. Hollywood Bowl Group is currently generating about 0.06 per unit of volatility. If you would invest 20,180 in Hollywood Bowl Group on September 4, 2024 and sell it today you would earn a total of 11,870 from holding Hollywood Bowl Group or generate 58.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Asiamet Resources Limited vs. Hollywood Bowl Group
Performance |
| Timeline |
| Asiamet Resources |
| Hollywood Bowl Group |
Asiamet Resources and Hollywood Bowl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asiamet Resources and Hollywood Bowl
The main advantage of trading using opposite Asiamet Resources and Hollywood Bowl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asiamet Resources 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.| Asiamet Resources vs. Erste Group Bank | Asiamet Resources vs. Hollywood Bowl Group | Asiamet Resources vs. Atresmedia | Asiamet Resources vs. Bank of Ireland |
| Hollywood Bowl vs. Samsung Electronics Co | Hollywood Bowl vs. Samsung Electronics Co | Hollywood Bowl vs. Hyundai Motor | Hollywood Bowl vs. Toyota Motor 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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