Correlation Between Endeavour Mining and Hollywood Bowl
Can any of the company-specific risk be diversified away by investing in both Endeavour Mining 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 Endeavour Mining and Hollywood Bowl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endeavour Mining Corp and Hollywood Bowl Group, you can compare the effects of market volatilities on Endeavour Mining 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 Endeavour Mining with a short position of Hollywood Bowl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endeavour Mining and Hollywood Bowl.
Diversification Opportunities for Endeavour Mining and Hollywood Bowl
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Endeavour and Hollywood is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Endeavour Mining Corp 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 Endeavour Mining 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 Endeavour Mining Corp 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 Endeavour Mining i.e., Endeavour Mining and Hollywood Bowl go up and down completely randomly.
Pair Corralation between Endeavour Mining and Hollywood Bowl
Assuming the 90 days trading horizon Endeavour Mining Corp is expected to under-perform the Hollywood Bowl. In addition to that, Endeavour Mining is 1.68 times more volatile than Hollywood Bowl Group. It trades about -0.24 of its total potential returns per unit of risk. Hollywood Bowl Group is currently generating about 0.05 per unit of volatility. If you would invest 31,700 in Hollywood Bowl Group on September 4, 2024 and sell it today you would earn a total of 350.00 from holding Hollywood Bowl Group or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Endeavour Mining Corp vs. Hollywood Bowl Group
Performance |
| Timeline |
| Endeavour Mining Corp |
| Hollywood Bowl Group |
Endeavour Mining and Hollywood Bowl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endeavour Mining and Hollywood Bowl
The main advantage of trading using opposite Endeavour Mining and Hollywood Bowl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavour Mining 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.| Endeavour Mining vs. Givaudan SA | Endeavour Mining vs. Antofagasta PLC | Endeavour Mining vs. Atalaya Mining | Endeavour Mining vs. Ferrexpo PLC |
| Hollywood Bowl vs. Samsung Electronics Co | Hollywood Bowl vs. Samsung Electronics Co | Hollywood Bowl vs. Hyundai Motor | Hollywood Bowl vs. Toyota Motor Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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