Correlation Between Hollywood Bowl and Intermediate Capital
Can any of the company-specific risk be diversified away by investing in both Hollywood Bowl and Intermediate Capital 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 Intermediate Capital 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 Intermediate Capital Group, you can compare the effects of market volatilities on Hollywood Bowl and Intermediate Capital 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 Intermediate Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Bowl and Intermediate Capital.
Diversification Opportunities for Hollywood Bowl and Intermediate Capital
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hollywood and Intermediate is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Bowl Group and Intermediate Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Capital 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 Intermediate Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Capital has no effect on the direction of Hollywood Bowl i.e., Hollywood Bowl and Intermediate Capital go up and down completely randomly.
Pair Corralation between Hollywood Bowl and Intermediate Capital
Assuming the 90 days trading horizon Hollywood Bowl Group is expected to under-perform the Intermediate Capital. In addition to that, Hollywood Bowl is 1.16 times more volatile than Intermediate Capital Group. It trades about -0.15 of its total potential returns per unit of risk. Intermediate Capital Group is currently generating about 0.12 per unit of volatility. If you would invest 217,370 in Intermediate Capital Group on November 4, 2024 and sell it today you would earn a total of 19,630 from holding Intermediate Capital Group or generate 9.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hollywood Bowl Group vs. Intermediate Capital Group
Performance |
| Timeline |
| Hollywood Bowl Group |
| Intermediate Capital |
Hollywood Bowl and Intermediate Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Bowl and Intermediate Capital
The main advantage of trading using opposite Hollywood Bowl and Intermediate Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Bowl position performs unexpectedly, Intermediate Capital 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 Intermediate Capital will offset losses from the drop in Intermediate Capital's long position.| Hollywood Bowl vs. Ubisoft Entertainment | Hollywood Bowl vs. One Media iP | Hollywood Bowl vs. Wyndham Hotels Resorts | Hollywood Bowl vs. Live Nation Entertainment |
| Intermediate Capital vs. International Biotechnology Trust | Intermediate Capital vs. Orient Telecoms | Intermediate Capital vs. TechnipFMC PLC | Intermediate Capital vs. Verizon Communications |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |