Correlation Between Hollywood Bowl and AcadeMedia
Can any of the company-specific risk be diversified away by investing in both Hollywood Bowl and AcadeMedia 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 AcadeMedia 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 AcadeMedia AB, you can compare the effects of market volatilities on Hollywood Bowl and AcadeMedia 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 AcadeMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Bowl and AcadeMedia.
Diversification Opportunities for Hollywood Bowl and AcadeMedia
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hollywood and AcadeMedia is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Bowl Group and AcadeMedia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcadeMedia AB 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 AcadeMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AcadeMedia AB has no effect on the direction of Hollywood Bowl i.e., Hollywood Bowl and AcadeMedia go up and down completely randomly.
Pair Corralation between Hollywood Bowl and AcadeMedia
Assuming the 90 days trading horizon Hollywood Bowl Group is expected to generate 1.29 times more return on investment than AcadeMedia. However, Hollywood Bowl is 1.29 times more volatile than AcadeMedia AB. It trades about -0.08 of its potential returns per unit of risk. AcadeMedia AB is currently generating about -0.23 per unit of risk. If you would invest 33,200 in Hollywood Bowl Group on August 29, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hollywood Bowl Group vs. AcadeMedia AB
Performance |
| Timeline |
| Hollywood Bowl Group |
| AcadeMedia AB |
Hollywood Bowl and AcadeMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Bowl and AcadeMedia
The main advantage of trading using opposite Hollywood Bowl and AcadeMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Bowl position performs unexpectedly, AcadeMedia 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 AcadeMedia will offset losses from the drop in AcadeMedia'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 |
| AcadeMedia vs. Samsung Electronics Co | AcadeMedia vs. Samsung Electronics Co | AcadeMedia vs. Hyundai Motor | AcadeMedia vs. Toyota Motor 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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