Correlation Between Hollywood Bowl and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both Hollywood Bowl and Cellnex Telecom 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 Cellnex Telecom 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 Cellnex Telecom SA, you can compare the effects of market volatilities on Hollywood Bowl and Cellnex Telecom 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 Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Bowl and Cellnex Telecom.
Diversification Opportunities for Hollywood Bowl and Cellnex Telecom
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hollywood and Cellnex is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Bowl Group and Cellnex Telecom SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellnex Telecom 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 Cellnex Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellnex Telecom SA has no effect on the direction of Hollywood Bowl i.e., Hollywood Bowl and Cellnex Telecom go up and down completely randomly.
Pair Corralation between Hollywood Bowl and Cellnex Telecom
Assuming the 90 days trading horizon Hollywood Bowl Group is expected to generate 0.99 times more return on investment than Cellnex Telecom. However, Hollywood Bowl Group is 1.01 times less risky than Cellnex Telecom. It trades about 0.05 of its potential returns per unit of risk. Cellnex Telecom SA is currently generating about -0.01 per unit of risk. If you would invest 24,848 in Hollywood Bowl Group on August 31, 2024 and sell it today you would earn a total of 7,152 from holding Hollywood Bowl Group or generate 28.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Hollywood Bowl Group vs. Cellnex Telecom SA
Performance |
| Timeline |
| Hollywood Bowl Group |
| Cellnex Telecom SA |
Hollywood Bowl and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Bowl and Cellnex Telecom
The main advantage of trading using opposite Hollywood Bowl and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Bowl position performs unexpectedly, Cellnex Telecom 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 Cellnex Telecom will offset losses from the drop in Cellnex Telecom's long position.| Hollywood Bowl vs. Sovereign Metals | Hollywood Bowl vs. Fidelity National Information | Hollywood Bowl vs. European Metals Holdings | Hollywood Bowl vs. GlobalData PLC |
| Cellnex Telecom vs. Bellevue Healthcare Trust | Cellnex Telecom vs. PPHE Hotel Group | Cellnex Telecom vs. Host Hotels Resorts | Cellnex Telecom vs. Worldwide Healthcare Trust |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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