Correlation Between Hollywood Bowl and Grieg Seafood
Can any of the company-specific risk be diversified away by investing in both Hollywood Bowl and Grieg Seafood 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 Hollywood Bowl and Grieg Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hollywood Bowl Group and Grieg Seafood, you can compare the effects of market volatilities on Hollywood Bowl and Grieg Seafood 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 Hollywood Bowl with a short position of Grieg Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Bowl and Grieg Seafood.
Diversification Opportunities for Hollywood Bowl and Grieg Seafood
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hollywood and Grieg is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Bowl Group and Grieg Seafood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grieg Seafood and Hollywood Bowl 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 Hollywood Bowl Group are associated (or correlated) with Grieg Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grieg Seafood has no effect on the direction of Hollywood Bowl i.e., Hollywood Bowl and Grieg Seafood go up and down completely randomly.
Pair Corralation between Hollywood Bowl and Grieg Seafood
Assuming the 90 days trading horizon Hollywood Bowl Group is expected to generate 0.74 times more return on investment than Grieg Seafood. However, Hollywood Bowl Group is 1.36 times less risky than Grieg Seafood. It trades about 0.07 of its potential returns per unit of risk. Grieg Seafood is currently generating about 0.0 per unit of risk. If you would invest 18,427 in Hollywood Bowl Group on September 2, 2024 and sell it today you would earn a total of 13,573 from holding Hollywood Bowl Group or generate 73.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Hollywood Bowl Group vs. Grieg Seafood
Performance |
| Timeline |
| Hollywood Bowl Group |
| Grieg Seafood |
Hollywood Bowl and Grieg Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Bowl and Grieg Seafood
The main advantage of trading using opposite Hollywood Bowl and Grieg Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Bowl position performs unexpectedly, Grieg Seafood 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 Grieg Seafood will offset losses from the drop in Grieg Seafood's long position.| Hollywood Bowl vs. Austevoll Seafood ASA | Hollywood Bowl vs. Trainline Plc | Hollywood Bowl vs. Ecofin Global Utilities | Hollywood Bowl vs. Lindsell Train Investment |
| Grieg Seafood vs. Uniper SE | Grieg Seafood vs. Mulberry Group PLC | Grieg Seafood vs. London Security Plc | Grieg Seafood vs. Triad Group PLC |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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