Correlation Between PUBLIC STORAGE and Hollywood Bowl
Can any of the company-specific risk be diversified away by investing in both PUBLIC STORAGE 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 PUBLIC STORAGE and Hollywood Bowl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PUBLIC STORAGE PRFO and Hollywood Bowl Group, you can compare the effects of market volatilities on PUBLIC STORAGE 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 PUBLIC STORAGE with a short position of Hollywood Bowl. Check out your portfolio center. Please also check ongoing floating volatility patterns of PUBLIC STORAGE and Hollywood Bowl.
Diversification Opportunities for PUBLIC STORAGE and Hollywood Bowl
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between PUBLIC and Hollywood is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding PUBLIC STORAGE PRFO 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 PUBLIC STORAGE 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 PUBLIC STORAGE PRFO 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 PUBLIC STORAGE i.e., PUBLIC STORAGE and Hollywood Bowl go up and down completely randomly.
Pair Corralation between PUBLIC STORAGE and Hollywood Bowl
Assuming the 90 days trading horizon PUBLIC STORAGE is expected to generate 1.24 times less return on investment than Hollywood Bowl. But when comparing it to its historical volatility, PUBLIC STORAGE PRFO is 1.95 times less risky than Hollywood Bowl. It trades about 0.05 of its potential returns per unit of risk. Hollywood Bowl Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 360.00 in Hollywood Bowl Group on September 5, 2024 and sell it today you would earn a total of 20.00 from holding Hollywood Bowl Group or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PUBLIC STORAGE PRFO vs. Hollywood Bowl Group
Performance |
| Timeline |
| PUBLIC STORAGE PRFO |
| Hollywood Bowl Group |
PUBLIC STORAGE and Hollywood Bowl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PUBLIC STORAGE and Hollywood Bowl
The main advantage of trading using opposite PUBLIC STORAGE and Hollywood Bowl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PUBLIC STORAGE 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.| PUBLIC STORAGE vs. Lyxor 1 | PUBLIC STORAGE vs. Xtrackers LevDAX | PUBLIC STORAGE vs. Xtrackers ShortDAX | PUBLIC STORAGE vs. Superior Plus Corp |
| Hollywood Bowl vs. Compugroup Medical SE | Hollywood Bowl vs. PUBLIC STORAGE PRFO | Hollywood Bowl vs. IMAGIN MEDICAL INC | Hollywood Bowl vs. Cass Information Systems |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |