Correlation Between Hollywood Bowl and Judges Scientific
Can any of the company-specific risk be diversified away by investing in both Hollywood Bowl and Judges Scientific 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 Judges Scientific 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 Judges Scientific Plc, you can compare the effects of market volatilities on Hollywood Bowl and Judges Scientific 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 Judges Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Bowl and Judges Scientific.
Diversification Opportunities for Hollywood Bowl and Judges Scientific
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hollywood and Judges is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Bowl Group and Judges Scientific Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Judges Scientific 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 Judges Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Judges Scientific Plc has no effect on the direction of Hollywood Bowl i.e., Hollywood Bowl and Judges Scientific go up and down completely randomly.
Pair Corralation between Hollywood Bowl and Judges Scientific
Assuming the 90 days trading horizon Hollywood Bowl Group is expected to generate 0.81 times more return on investment than Judges Scientific. However, Hollywood Bowl Group is 1.23 times less risky than Judges Scientific. It trades about -0.09 of its potential returns per unit of risk. Judges Scientific Plc is currently generating about -0.48 per unit of risk. If you would invest 29,550 in Hollywood Bowl Group on October 21, 2024 and sell it today you would lose (700.00) from holding Hollywood Bowl Group or give up 2.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hollywood Bowl Group vs. Judges Scientific Plc
Performance |
| Timeline |
| Hollywood Bowl Group |
| Judges Scientific Plc |
Hollywood Bowl and Judges Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Bowl and Judges Scientific
The main advantage of trading using opposite Hollywood Bowl and Judges Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Bowl position performs unexpectedly, Judges Scientific 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 Judges Scientific will offset losses from the drop in Judges Scientific's long position.| Hollywood Bowl vs. Associated British Foods | Hollywood Bowl vs. BW Offshore | Hollywood Bowl vs. Ebro Foods | Hollywood Bowl vs. Spirent Communications plc |
| Judges Scientific vs. Samsung Electronics Co | Judges Scientific vs. Samsung Electronics Co | Judges Scientific vs. Toyota Motor Corp | Judges Scientific vs. State Bank of |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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