Correlation Between Hollywood Bowl and IXICO PLC
Can any of the company-specific risk be diversified away by investing in both Hollywood Bowl and IXICO PLC 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 IXICO PLC 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 IXICO PLC, you can compare the effects of market volatilities on Hollywood Bowl and IXICO PLC 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 IXICO PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Bowl and IXICO PLC.
Diversification Opportunities for Hollywood Bowl and IXICO PLC
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hollywood and IXICO is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Bowl Group and IXICO PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IXICO PLC 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 IXICO PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IXICO PLC has no effect on the direction of Hollywood Bowl i.e., Hollywood Bowl and IXICO PLC go up and down completely randomly.
Pair Corralation between Hollywood Bowl and IXICO PLC
Assuming the 90 days trading horizon Hollywood Bowl Group is expected to under-perform the IXICO PLC. In addition to that, Hollywood Bowl is 1.38 times more volatile than IXICO PLC. It trades about -0.34 of its total potential returns per unit of risk. IXICO PLC is currently generating about 0.06 per unit of volatility. If you would invest 1,150 in IXICO PLC on October 14, 2024 and sell it today you would earn a total of 25.00 from holding IXICO PLC or generate 2.17% 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. IXICO PLC
Performance |
| Timeline |
| Hollywood Bowl Group |
| IXICO PLC |
Hollywood Bowl and IXICO PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Bowl and IXICO PLC
The main advantage of trading using opposite Hollywood Bowl and IXICO PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Bowl position performs unexpectedly, IXICO PLC 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 IXICO PLC will offset losses from the drop in IXICO PLC's long position.| Hollywood Bowl vs. Micron Technology | Hollywood Bowl vs. Smarttech247 Group PLC | Hollywood Bowl vs. Tatton Asset Management | Hollywood Bowl vs. Spotify Technology SA |
| IXICO PLC vs. Hochschild Mining plc | IXICO PLC vs. Hollywood Bowl Group | IXICO PLC vs. Adriatic Metals | IXICO PLC vs. Atresmedia |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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