Correlation Between Eastinco Mining and Hollywood Bowl
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining 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 Eastinco Mining and Hollywood Bowl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastinco Mining Exploration and Hollywood Bowl Group, you can compare the effects of market volatilities on Eastinco Mining 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 Eastinco Mining with a short position of Hollywood Bowl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and Hollywood Bowl.
Diversification Opportunities for Eastinco Mining and Hollywood Bowl
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eastinco and Hollywood is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration 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 Eastinco Mining 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 Eastinco Mining Exploration 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 Eastinco Mining i.e., Eastinco Mining and Hollywood Bowl go up and down completely randomly.
Pair Corralation between Eastinco Mining and Hollywood Bowl
Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to generate 0.63 times more return on investment than Hollywood Bowl. However, Eastinco Mining Exploration is 1.6 times less risky than Hollywood Bowl. It trades about 0.41 of its potential returns per unit of risk. Hollywood Bowl Group is currently generating about 0.05 per unit of risk. If you would invest 4,900 in Eastinco Mining Exploration on September 4, 2024 and sell it today you would earn a total of 350.00 from holding Eastinco Mining Exploration or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastinco Mining Exploration vs. Hollywood Bowl Group
Performance |
| Timeline |
| Eastinco Mining Expl |
| Hollywood Bowl Group |
Eastinco Mining and Hollywood Bowl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastinco Mining and Hollywood Bowl
The main advantage of trading using opposite Eastinco Mining and Hollywood Bowl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining 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.| Eastinco Mining vs. Antofagasta PLC | Eastinco Mining vs. Atalaya Mining | Eastinco Mining vs. Ferrexpo PLC | Eastinco Mining vs. Amaroq Minerals |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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