Correlation Between SANTANDER and Hollywood Bowl
Can any of the company-specific risk be diversified away by investing in both SANTANDER 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 SANTANDER and Hollywood Bowl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANTANDER UK 8 and Hollywood Bowl Group, you can compare the effects of market volatilities on SANTANDER 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 SANTANDER with a short position of Hollywood Bowl. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANTANDER and Hollywood Bowl.
Diversification Opportunities for SANTANDER and Hollywood Bowl
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between SANTANDER and Hollywood is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding SANTANDER UK 8 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 SANTANDER 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 SANTANDER UK 8 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 SANTANDER i.e., SANTANDER and Hollywood Bowl go up and down completely randomly.
Pair Corralation between SANTANDER and Hollywood Bowl
Assuming the 90 days trading horizon SANTANDER UK 8 is expected to generate 0.21 times more return on investment than Hollywood Bowl. However, SANTANDER UK 8 is 4.85 times less risky than Hollywood Bowl. It trades about -0.48 of its potential returns per unit of risk. Hollywood Bowl Group is currently generating about -0.13 per unit of risk. If you would invest 13,650 in SANTANDER UK 8 on October 24, 2024 and sell it today you would lose (350.00) from holding SANTANDER UK 8 or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SANTANDER UK 8 vs. Hollywood Bowl Group
Performance |
| Timeline |
| SANTANDER UK 8 |
| Hollywood Bowl Group |
SANTANDER and Hollywood Bowl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANTANDER and Hollywood Bowl
The main advantage of trading using opposite SANTANDER and Hollywood Bowl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANTANDER 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.| SANTANDER vs. Worldwide Healthcare Trust | SANTANDER vs. Planet Fitness Cl | SANTANDER vs. Mobile Tornado Group | SANTANDER vs. Bellevue Healthcare Trust |
| Hollywood Bowl vs. Tavistock Investments Plc | Hollywood Bowl vs. OneSavings Bank PLC | Hollywood Bowl vs. Tatton Asset Management | Hollywood Bowl vs. Jupiter Fund Management |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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