Correlation Between Hollywood Bowl and Eastinco Mining
Can any of the company-specific risk be diversified away by investing in both Hollywood Bowl and Eastinco Mining 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 Eastinco Mining 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 Eastinco Mining Exploration, you can compare the effects of market volatilities on Hollywood Bowl and Eastinco Mining 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 Eastinco Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Bowl and Eastinco Mining.
Diversification Opportunities for Hollywood Bowl and Eastinco Mining
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hollywood and Eastinco is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Bowl Group and Eastinco Mining Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastinco Mining Expl 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 Eastinco Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastinco Mining Expl has no effect on the direction of Hollywood Bowl i.e., Hollywood Bowl and Eastinco Mining go up and down completely randomly.
Pair Corralation between Hollywood Bowl and Eastinco Mining
Assuming the 90 days trading horizon Hollywood Bowl Group is expected to generate 0.79 times more return on investment than Eastinco Mining. However, Hollywood Bowl Group is 1.26 times less risky than Eastinco Mining. It trades about 0.06 of its potential returns per unit of risk. Eastinco Mining Exploration is currently generating about -0.08 per unit of risk. If you would invest 30,450 in Hollywood Bowl Group on September 12, 2024 and sell it today you would earn a total of 2,850 from holding Hollywood Bowl Group or generate 9.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hollywood Bowl Group vs. Eastinco Mining Exploration
Performance |
| Timeline |
| Hollywood Bowl Group |
| Eastinco Mining Expl |
Hollywood Bowl and Eastinco Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Bowl and Eastinco Mining
The main advantage of trading using opposite Hollywood Bowl and Eastinco Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Bowl position performs unexpectedly, Eastinco Mining 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 Eastinco Mining will offset losses from the drop in Eastinco Mining's long position.| Hollywood Bowl vs. National Atomic Co | Hollywood Bowl vs. OTP Bank Nyrt | Hollywood Bowl vs. Samsung Electronics Co | Hollywood Bowl vs. Samsung Electronics Co |
| Eastinco Mining vs. Givaudan SA | Eastinco Mining vs. Antofagasta PLC | Eastinco Mining vs. Ferrexpo PLC | Eastinco Mining vs. Atalaya Mining |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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