Correlation Between GungHo Online and Hollywood Bowl
Can any of the company-specific risk be diversified away by investing in both GungHo Online 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 GungHo Online and Hollywood Bowl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GungHo Online Entertainment and Hollywood Bowl Group, you can compare the effects of market volatilities on GungHo Online 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 GungHo Online with a short position of Hollywood Bowl. Check out your portfolio center. Please also check ongoing floating volatility patterns of GungHo Online and Hollywood Bowl.
Diversification Opportunities for GungHo Online and Hollywood Bowl
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GungHo and Hollywood is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding GungHo Online Entertainment 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 GungHo Online 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 GungHo Online Entertainment 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 GungHo Online i.e., GungHo Online and Hollywood Bowl go up and down completely randomly.
Pair Corralation between GungHo Online and Hollywood Bowl
Assuming the 90 days horizon GungHo Online Entertainment is expected to under-perform the Hollywood Bowl. But the stock apears to be less risky and, when comparing its historical volatility, GungHo Online Entertainment is 1.03 times less risky than Hollywood Bowl. The stock trades about -0.01 of its potential returns per unit of risk. The Hollywood Bowl Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 338.00 in Hollywood Bowl Group on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Hollywood Bowl Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GungHo Online Entertainment vs. Hollywood Bowl Group
Performance |
| Timeline |
| GungHo Online Entert |
| Hollywood Bowl Group |
GungHo Online and Hollywood Bowl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GungHo Online and Hollywood Bowl
The main advantage of trading using opposite GungHo Online and Hollywood Bowl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GungHo Online 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.| GungHo Online vs. ANGANG STEEL H | GungHo Online vs. T MOBILE US | GungHo Online vs. IMPERIAL TOBACCO | GungHo Online vs. Tianjin Capital Environmental |
| Hollywood Bowl vs. Burlington Stores | Hollywood Bowl vs. Taiwan Semiconductor Manufacturing | Hollywood Bowl vs. BURLINGTON STORES | Hollywood Bowl vs. Retail Estates NV |
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.
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