Correlation Between Athelney Trust and Hollywood Bowl
Can any of the company-specific risk be diversified away by investing in both Athelney Trust 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 Athelney Trust and Hollywood Bowl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athelney Trust plc and Hollywood Bowl Group, you can compare the effects of market volatilities on Athelney Trust 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 Athelney Trust with a short position of Hollywood Bowl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athelney Trust and Hollywood Bowl.
Diversification Opportunities for Athelney Trust and Hollywood Bowl
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Athelney and Hollywood is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Athelney Trust 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 Athelney Trust 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 Athelney Trust 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 Athelney Trust i.e., Athelney Trust and Hollywood Bowl go up and down completely randomly.
Pair Corralation between Athelney Trust and Hollywood Bowl
Assuming the 90 days trading horizon Athelney Trust plc is expected to under-perform the Hollywood Bowl. But the stock apears to be less risky and, when comparing its historical volatility, Athelney Trust plc is 1.83 times less risky than Hollywood Bowl. The stock trades about 0.0 of its potential returns per unit of risk. The Hollywood Bowl Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 22,589 in Hollywood Bowl Group on November 2, 2024 and sell it today you would earn a total of 4,861 from holding Hollywood Bowl Group or generate 21.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Athelney Trust plc vs. Hollywood Bowl Group
Performance |
| Timeline |
| Athelney Trust plc |
| Hollywood Bowl Group |
Athelney Trust and Hollywood Bowl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athelney Trust and Hollywood Bowl
The main advantage of trading using opposite Athelney Trust and Hollywood Bowl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athelney Trust 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.| Athelney Trust vs. Applied Materials | Athelney Trust vs. Bloomsbury Publishing Plc | Athelney Trust vs. SBM Offshore NV | Athelney Trust vs. European Metals Holdings |
| Hollywood Bowl vs. Geely Automobile Holdings | Hollywood Bowl vs. Associated British Foods | Hollywood Bowl vs. Charter Communications Cl | Hollywood Bowl vs. Darden Restaurants |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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