Correlation Between Hollywood Bowl and Cornish Metals
Can any of the company-specific risk be diversified away by investing in both Hollywood Bowl and Cornish Metals 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 Cornish Metals 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 Cornish Metals, you can compare the effects of market volatilities on Hollywood Bowl and Cornish Metals 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 Cornish Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Bowl and Cornish Metals.
Diversification Opportunities for Hollywood Bowl and Cornish Metals
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hollywood and Cornish is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Bowl Group and Cornish Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cornish Metals 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 Cornish Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cornish Metals has no effect on the direction of Hollywood Bowl i.e., Hollywood Bowl and Cornish Metals go up and down completely randomly.
Pair Corralation between Hollywood Bowl and Cornish Metals
Assuming the 90 days trading horizon Hollywood Bowl Group is expected to under-perform the Cornish Metals. But the stock apears to be less risky and, when comparing its historical volatility, Hollywood Bowl Group is 1.12 times less risky than Cornish Metals. The stock trades about -0.13 of its potential returns per unit of risk. The Cornish Metals is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 825.00 in Cornish Metals on October 28, 2024 and sell it today you would earn a total of 25.00 from holding Cornish Metals or generate 3.03% 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. Cornish Metals
Performance |
| Timeline |
| Hollywood Bowl Group |
| Cornish Metals |
Hollywood Bowl and Cornish Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Bowl and Cornish Metals
The main advantage of trading using opposite Hollywood Bowl and Cornish Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Bowl position performs unexpectedly, Cornish Metals 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 Cornish Metals will offset losses from the drop in Cornish Metals' long position.| Hollywood Bowl vs. Aptitude Software Group | Hollywood Bowl vs. Sealed Air Corp | Hollywood Bowl vs. Automatic Data Processing | Hollywood Bowl vs. Teradata Corp |
| Cornish Metals vs. Givaudan SA | Cornish Metals vs. Antofagasta PLC | Cornish Metals vs. Ferrexpo PLC | Cornish Metals 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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