Correlation Between Hollywall Entertainment and XLMedia PLC
Can any of the company-specific risk be diversified away by investing in both Hollywall Entertainment and XLMedia PLC 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 Hollywall Entertainment and XLMedia PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hollywall Entertainment and XLMedia PLC, you can compare the effects of market volatilities on Hollywall Entertainment and XLMedia PLC 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 Hollywall Entertainment with a short position of XLMedia PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hollywall Entertainment and XLMedia PLC.
Diversification Opportunities for Hollywall Entertainment and XLMedia PLC
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hollywall and XLMedia is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Hollywall Entertainment and XLMedia PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XLMedia PLC and Hollywall Entertainment 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 Hollywall Entertainment are associated (or correlated) with XLMedia PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XLMedia PLC has no effect on the direction of Hollywall Entertainment i.e., Hollywall Entertainment and XLMedia PLC go up and down completely randomly.
Pair Corralation between Hollywall Entertainment and XLMedia PLC
Given the investment horizon of 90 days Hollywall Entertainment is expected to generate 3.07 times more return on investment than XLMedia PLC. However, Hollywall Entertainment is 3.07 times more volatile than XLMedia PLC. It trades about 0.01 of its potential returns per unit of risk. XLMedia PLC is currently generating about -0.12 per unit of risk. If you would invest 8.40 in Hollywall Entertainment on September 9, 2025 and sell it today you would lose (2.40) from holding Hollywall Entertainment or give up 28.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Hollywall Entertainment vs. XLMedia PLC
Performance |
| Timeline |
| Hollywall Entertainment |
| XLMedia PLC |
Hollywall Entertainment and XLMedia PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hollywall Entertainment and XLMedia PLC
The main advantage of trading using opposite Hollywall Entertainment and XLMedia PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hollywall Entertainment position performs unexpectedly, XLMedia PLC 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 XLMedia PLC will offset losses from the drop in XLMedia PLC's long position.The idea behind Hollywall Entertainment and XLMedia PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| XLMedia PLC vs. Sing Tao News | XLMedia PLC vs. Glacier Media | XLMedia PLC vs. SportsHero Limited | XLMedia PLC vs. Hollywall Entertainment |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |