Correlation Between Canon Marketing and Hollywood Bowl
Can any of the company-specific risk be diversified away by investing in both Canon Marketing and Hollywood Bowl 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 Canon Marketing and Hollywood Bowl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canon Marketing Japan and Hollywood Bowl Group, you can compare the effects of market volatilities on Canon Marketing and Hollywood Bowl 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 Canon Marketing with a short position of Hollywood Bowl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canon Marketing and Hollywood Bowl.
Diversification Opportunities for Canon Marketing and Hollywood Bowl
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canon and Hollywood is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Canon Marketing Japan and Hollywood Bowl Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hollywood Bowl Group and Canon Marketing 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 Canon Marketing Japan are associated (or correlated) with Hollywood Bowl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hollywood Bowl Group has no effect on the direction of Canon Marketing i.e., Canon Marketing and Hollywood Bowl go up and down completely randomly.
Pair Corralation between Canon Marketing and Hollywood Bowl
Assuming the 90 days horizon Canon Marketing Japan is expected to generate 0.58 times more return on investment than Hollywood Bowl. However, Canon Marketing Japan is 1.72 times less risky than Hollywood Bowl. It trades about 0.13 of its potential returns per unit of risk. Hollywood Bowl Group is currently generating about -0.13 per unit of risk. If you would invest 2,760 in Canon Marketing Japan on October 29, 2024 and sell it today you would earn a total of 260.00 from holding Canon Marketing Japan or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canon Marketing Japan vs. Hollywood Bowl Group
Performance |
| Timeline |
| Canon Marketing Japan |
| Hollywood Bowl Group |
Canon Marketing and Hollywood Bowl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canon Marketing and Hollywood Bowl
The main advantage of trading using opposite Canon Marketing and Hollywood Bowl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canon Marketing position performs unexpectedly, Hollywood Bowl 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 Hollywood Bowl will offset losses from the drop in Hollywood Bowl's long position.| Canon Marketing vs. VIRGIN WINES UK | Canon Marketing vs. Playtech plc | Canon Marketing vs. COLUMBIA SPORTSWEAR | Canon Marketing vs. UNIVERSAL DISPLAY |
| Hollywood Bowl vs. Clean Energy Fuels | Hollywood Bowl vs. CyberArk Software | Hollywood Bowl vs. Singapore Reinsurance | Hollywood Bowl vs. Vienna Insurance 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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