Correlation Between Hollywood Intermediate and ATRenew
Can any of the company-specific risk be diversified away by investing in both Hollywood Intermediate and ATRenew 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 Intermediate and ATRenew into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hollywood Intermediate and ATRenew Inc DRC, you can compare the effects of market volatilities on Hollywood Intermediate and ATRenew 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 Intermediate with a short position of ATRenew. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywood Intermediate and ATRenew.
Diversification Opportunities for Hollywood Intermediate and ATRenew
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hollywood and ATRenew is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hollywood Intermediate and ATRenew Inc DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRenew Inc DRC and Hollywood Intermediate 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 Intermediate are associated (or correlated) with ATRenew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRenew Inc DRC has no effect on the direction of Hollywood Intermediate i.e., Hollywood Intermediate and ATRenew go up and down completely randomly.
Pair Corralation between Hollywood Intermediate and ATRenew
Given the investment horizon of 90 days Hollywood Intermediate is expected to under-perform the ATRenew. But the stock apears to be less risky and, when comparing its historical volatility, Hollywood Intermediate is 1.03 times less risky than ATRenew. The stock trades about -0.04 of its potential returns per unit of risk. The ATRenew Inc DRC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 312.00 in ATRenew Inc DRC on October 12, 2024 and sell it today you would lose (50.00) from holding ATRenew Inc DRC or give up 16.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hollywood Intermediate vs. ATRenew Inc DRC
Performance |
| Timeline |
| Hollywood Intermediate |
| ATRenew Inc DRC |
Hollywood Intermediate and ATRenew Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywood Intermediate and ATRenew
The main advantage of trading using opposite Hollywood Intermediate and ATRenew positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywood Intermediate position performs unexpectedly, ATRenew 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 ATRenew will offset losses from the drop in ATRenew's long position.| Hollywood Intermediate vs. AMC Entertainment Holdings | Hollywood Intermediate vs. Cinemark Holdings | Hollywood Intermediate vs. Roku Inc | Hollywood Intermediate vs. Netflix |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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