Correlation Between Bellevue Healthcare and Hollywood Bowl
Can any of the company-specific risk be diversified away by investing in both Bellevue Healthcare 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 Bellevue Healthcare and Hollywood Bowl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bellevue Healthcare Trust and Hollywood Bowl Group, you can compare the effects of market volatilities on Bellevue Healthcare 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 Bellevue Healthcare with a short position of Hollywood Bowl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellevue Healthcare and Hollywood Bowl.
Diversification Opportunities for Bellevue Healthcare and Hollywood Bowl
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bellevue and Hollywood is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bellevue Healthcare Trust 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 Bellevue Healthcare 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 Bellevue Healthcare Trust 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 Bellevue Healthcare i.e., Bellevue Healthcare and Hollywood Bowl go up and down completely randomly.
Pair Corralation between Bellevue Healthcare and Hollywood Bowl
Assuming the 90 days trading horizon Bellevue Healthcare Trust is expected to generate 0.93 times more return on investment than Hollywood Bowl. However, Bellevue Healthcare Trust is 1.07 times less risky than Hollywood Bowl. It trades about -0.02 of its potential returns per unit of risk. Hollywood Bowl Group is currently generating about -0.06 per unit of risk. If you would invest 14,200 in Bellevue Healthcare Trust on September 1, 2024 and sell it today you would lose (80.00) from holding Bellevue Healthcare Trust or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bellevue Healthcare Trust vs. Hollywood Bowl Group
Performance |
| Timeline |
| Bellevue Healthcare Trust |
| Hollywood Bowl Group |
Bellevue Healthcare and Hollywood Bowl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellevue Healthcare and Hollywood Bowl
The main advantage of trading using opposite Bellevue Healthcare and Hollywood Bowl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellevue Healthcare 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.| Bellevue Healthcare vs. Bytes Technology | Bellevue Healthcare vs. Take Two Interactive Software | Bellevue Healthcare vs. JB Hunt Transport | Bellevue Healthcare vs. Solstad Offshore ASA |
| Hollywood Bowl vs. Public Storage | Hollywood Bowl vs. Optima Health plc | Hollywood Bowl vs. Bellevue Healthcare Trust | Hollywood Bowl vs. Target Healthcare REIT |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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