Correlation Between Hollywood Bowl and Givaudan
Can any of the company-specific risk be diversified away by investing in both Hollywood Bowl and Givaudan 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 Givaudan 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 Givaudan SA, you can compare the effects of market volatilities on Hollywood Bowl and Givaudan 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 Givaudan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Bowl and Givaudan.
Diversification Opportunities for Hollywood Bowl and Givaudan
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hollywood and Givaudan is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Bowl Group and Givaudan SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Givaudan SA 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 Givaudan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Givaudan SA has no effect on the direction of Hollywood Bowl i.e., Hollywood Bowl and Givaudan go up and down completely randomly.
Pair Corralation between Hollywood Bowl and Givaudan
Assuming the 90 days trading horizon Hollywood Bowl Group is expected to generate 1.1 times more return on investment than Givaudan. However, Hollywood Bowl is 1.1 times more volatile than Givaudan SA. It trades about -0.08 of its potential returns per unit of risk. Givaudan SA is currently generating about -0.25 per unit of risk. If you would invest 33,200 in Hollywood Bowl Group on August 28, 2024 and sell it today you would lose (900.00) from holding Hollywood Bowl Group or give up 2.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hollywood Bowl Group vs. Givaudan SA
Performance |
| Timeline |
| Hollywood Bowl Group |
| Givaudan SA |
Hollywood Bowl and Givaudan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Bowl and Givaudan
The main advantage of trading using opposite Hollywood Bowl and Givaudan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Bowl position performs unexpectedly, Givaudan 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 Givaudan will offset losses from the drop in Givaudan's long position.| Hollywood Bowl vs. Zinc Media Group | Hollywood Bowl vs. AcadeMedia AB | Hollywood Bowl vs. XLMedia PLC | Hollywood Bowl vs. AMG Advanced Metallurgical |
| Givaudan vs. JD Sports Fashion | Givaudan vs. Dolly Varden Silver | Givaudan vs. iShares Physical Silver | Givaudan vs. Dentsply Sirona |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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