A Cross-sectional Analysis of the Hollywood Stock Exchange's Forecasting Accuracy and Risk vs. Return Relationships
Open Access
Author:
Olsho, Benjamin A
Area of Honors:
Finance
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
Timothy T Simin, Thesis Supervisor James Alan Miles, Thesis Honors Advisor
Keywords:
Hollywood Stock Exchange HSX Prediction Markets Virtual Markets Forecasting Risk vs. Return Box Office Movies
Abstract:
This paper examines 98 MovieStocks traded on the online entertainment prediction market, the Hollywood Stock Exchange (HSX). The analysis primarily sheds light on the market’s long-term predictive accuracy and risk vs. return relationships. In both categories, variables including a movie’s genre, time to release, and total box office revenue are considered.
Data includes popular movies released from July 2011 to January 2013 from the 10 largest domestic film studios. The results will be of interest to Hollywood executives and movie exhibitors for decisions involving marketing and revenue forecasting. HSX participants will also benefit from analysis of the risk-adjusted returns of various MovieStocks.
