Correlation Between SupplyMe Capital and Hollywood Bowl
Can any of the company-specific risk be diversified away by investing in both SupplyMe Capital 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 SupplyMe Capital and Hollywood Bowl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SupplyMe Capital PLC and Hollywood Bowl Group, you can compare the effects of market volatilities on SupplyMe Capital 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 SupplyMe Capital with a short position of Hollywood Bowl. Check out your portfolio center. Please also check ongoing floating volatility patterns of SupplyMe Capital and Hollywood Bowl.
Diversification Opportunities for SupplyMe Capital and Hollywood Bowl
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between SupplyMe and Hollywood is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding SupplyMe Capital PLC 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 SupplyMe Capital 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 SupplyMe Capital PLC 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 SupplyMe Capital i.e., SupplyMe Capital and Hollywood Bowl go up and down completely randomly.
Pair Corralation between SupplyMe Capital and Hollywood Bowl
Assuming the 90 days trading horizon SupplyMe Capital PLC is expected to under-perform the Hollywood Bowl. In addition to that, SupplyMe Capital is 4.48 times more volatile than Hollywood Bowl Group. It trades about -0.12 of its total potential returns per unit of risk. Hollywood Bowl Group is currently generating about -0.13 per unit of volatility. If you would invest 29,400 in Hollywood Bowl Group on October 24, 2024 and sell it today you would lose (1,050) from holding Hollywood Bowl Group or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
SupplyMe Capital PLC vs. Hollywood Bowl Group
Performance |
| Timeline |
| SupplyMe Capital PLC |
| Hollywood Bowl Group |
SupplyMe Capital and Hollywood Bowl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SupplyMe Capital and Hollywood Bowl
The main advantage of trading using opposite SupplyMe Capital and Hollywood Bowl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SupplyMe Capital 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.| SupplyMe Capital vs. Jacquet Metal Service | SupplyMe Capital vs. Gaztransport et Technigaz | SupplyMe Capital vs. AMG Advanced Metallurgical | SupplyMe Capital vs. Capital Metals PLC |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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