Correlation Between Austco Healthcare and COAST ENTERTAINMENT
Can any of the company-specific risk be diversified away by investing in both Austco Healthcare and COAST ENTERTAINMENT 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 Austco Healthcare and COAST ENTERTAINMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austco Healthcare and COAST ENTERTAINMENT HOLDINGS, you can compare the effects of market volatilities on Austco Healthcare and COAST ENTERTAINMENT 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 Austco Healthcare with a short position of COAST ENTERTAINMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austco Healthcare and COAST ENTERTAINMENT.
Diversification Opportunities for Austco Healthcare and COAST ENTERTAINMENT
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Austco and COAST is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Austco Healthcare and COAST ENTERTAINMENT HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COAST ENTERTAINMENT and Austco Healthcare 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 Austco Healthcare are associated (or correlated) with COAST ENTERTAINMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COAST ENTERTAINMENT has no effect on the direction of Austco Healthcare i.e., Austco Healthcare and COAST ENTERTAINMENT go up and down completely randomly.
Pair Corralation between Austco Healthcare and COAST ENTERTAINMENT
Assuming the 90 days trading horizon Austco Healthcare is expected to generate 1.32 times more return on investment than COAST ENTERTAINMENT. However, Austco Healthcare is 1.32 times more volatile than COAST ENTERTAINMENT HOLDINGS. It trades about 0.06 of its potential returns per unit of risk. COAST ENTERTAINMENT HOLDINGS is currently generating about -0.01 per unit of risk. If you would invest 13.00 in Austco Healthcare on December 2, 2024 and sell it today you would earn a total of 15.00 from holding Austco Healthcare or generate 115.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austco Healthcare vs. COAST ENTERTAINMENT HOLDINGS
Performance |
| Timeline |
| Austco Healthcare |
| COAST ENTERTAINMENT |
Austco Healthcare and COAST ENTERTAINMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austco Healthcare and COAST ENTERTAINMENT
The main advantage of trading using opposite Austco Healthcare and COAST ENTERTAINMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austco Healthcare position performs unexpectedly, COAST ENTERTAINMENT 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 COAST ENTERTAINMENT will offset losses from the drop in COAST ENTERTAINMENT's long position.| Austco Healthcare vs. Kkr Credit Income | ||
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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