Correlation Between Hollywood Bowl and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Hollywood Bowl and GreenX 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 GreenX 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 GreenX Metals, you can compare the effects of market volatilities on Hollywood Bowl and GreenX 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 GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Bowl and GreenX Metals.
Diversification Opportunities for Hollywood Bowl and GreenX Metals
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hollywood and GreenX is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Bowl Group and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX 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 GreenX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenX Metals has no effect on the direction of Hollywood Bowl i.e., Hollywood Bowl and GreenX Metals go up and down completely randomly.
Pair Corralation between Hollywood Bowl and GreenX Metals
Assuming the 90 days trading horizon Hollywood Bowl Group is expected to under-perform the GreenX Metals. But the stock apears to be less risky and, when comparing its historical volatility, Hollywood Bowl Group is 1.4 times less risky than GreenX Metals. The stock trades about -0.22 of its potential returns per unit of risk. The GreenX Metals is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 3,400 in GreenX Metals on October 25, 2024 and sell it today you would earn a total of 450.00 from holding GreenX Metals or generate 13.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Hollywood Bowl Group vs. GreenX Metals
Performance |
| Timeline |
| Hollywood Bowl Group |
| GreenX Metals |
Hollywood Bowl and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Bowl and GreenX Metals
The main advantage of trading using opposite Hollywood Bowl and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Bowl position performs unexpectedly, GreenX 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 GreenX Metals will offset losses from the drop in GreenX Metals' long position.| Hollywood Bowl vs. Lundin Mining Corp | Hollywood Bowl vs. Silvercorp Metals | Hollywood Bowl vs. Metals Exploration Plc | Hollywood Bowl vs. Sovereign Metals |
| GreenX Metals vs. HCA Healthcare | GreenX Metals vs. Inspiration Healthcare Group | GreenX Metals vs. Hollywood Bowl Group | GreenX Metals vs. Catalyst Media Group |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |