Correlation Between Ping An and Hollywood Bowl
Can any of the company-specific risk be diversified away by investing in both Ping An 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 Ping An and Hollywood Bowl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ping An Insurance and Hollywood Bowl Group, you can compare the effects of market volatilities on Ping An 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 Ping An with a short position of Hollywood Bowl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Hollywood Bowl.
Diversification Opportunities for Ping An and Hollywood Bowl
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ping and Hollywood is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance 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 Ping An 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 Ping An Insurance 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 Ping An i.e., Ping An and Hollywood Bowl go up and down completely randomly.
Pair Corralation between Ping An and Hollywood Bowl
Assuming the 90 days horizon Ping An Insurance is expected to generate 0.8 times more return on investment than Hollywood Bowl. However, Ping An Insurance is 1.24 times less risky than Hollywood Bowl. It trades about -0.23 of its potential returns per unit of risk. Hollywood Bowl Group is currently generating about -0.23 per unit of risk. If you would invest 568.00 in Ping An Insurance on October 24, 2024 and sell it today you would lose (39.00) from holding Ping An Insurance or give up 6.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Hollywood Bowl Group
Performance |
| Timeline |
| Ping An Insurance |
| Hollywood Bowl Group |
Ping An and Hollywood Bowl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Hollywood Bowl
The main advantage of trading using opposite Ping An and Hollywood Bowl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An 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.| Ping An vs. Sterling Construction | Ping An vs. Park Hotels Resorts | Ping An vs. North American Construction | Ping An vs. Sumitomo Mitsui Construction |
| Hollywood Bowl vs. SIERRA METALS | Hollywood Bowl vs. Tencent Music Entertainment | Hollywood Bowl vs. Fuji Media Holdings | Hollywood Bowl vs. ANTA SPORTS PRODUCT |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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