Correlation Between Hollywood Bowl and Prosiebensat
Can any of the company-specific risk be diversified away by investing in both Hollywood Bowl and Prosiebensat 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 Prosiebensat 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 Prosiebensat 1 Media, you can compare the effects of market volatilities on Hollywood Bowl and Prosiebensat 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 Prosiebensat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Bowl and Prosiebensat.
Diversification Opportunities for Hollywood Bowl and Prosiebensat
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hollywood and Prosiebensat is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Bowl Group and Prosiebensat 1 Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prosiebensat 1 Media 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 Prosiebensat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prosiebensat 1 Media has no effect on the direction of Hollywood Bowl i.e., Hollywood Bowl and Prosiebensat go up and down completely randomly.
Pair Corralation between Hollywood Bowl and Prosiebensat
Assuming the 90 days trading horizon Hollywood Bowl Group is expected to generate 0.64 times more return on investment than Prosiebensat. However, Hollywood Bowl Group is 1.55 times less risky than Prosiebensat. It trades about 0.04 of its potential returns per unit of risk. Prosiebensat 1 Media is currently generating about -0.03 per unit of risk. If you would invest 22,308 in Hollywood Bowl Group on November 6, 2024 and sell it today you would earn a total of 5,792 from holding Hollywood Bowl Group or generate 25.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Hollywood Bowl Group vs. Prosiebensat 1 Media
Performance |
| Timeline |
| Hollywood Bowl Group |
| Prosiebensat 1 Media |
Hollywood Bowl and Prosiebensat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Bowl and Prosiebensat
The main advantage of trading using opposite Hollywood Bowl and Prosiebensat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Bowl position performs unexpectedly, Prosiebensat 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 Prosiebensat will offset losses from the drop in Prosiebensat's long position.| Hollywood Bowl vs. Herald Investment Trust | Hollywood Bowl vs. Gear4music Plc | Hollywood Bowl vs. Smithson Investment Trust | Hollywood Bowl vs. Bankers Investment Trust |
| Prosiebensat vs. Zinc Media Group | Prosiebensat vs. XLMedia PLC | Prosiebensat vs. Hollywood Bowl Group | Prosiebensat vs. Universal Display 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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