Correlation Between COAST ENTERTAINMENT and Aspire Mining
Can any of the company-specific risk be diversified away by investing in both COAST ENTERTAINMENT and Aspire Mining 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 COAST ENTERTAINMENT and Aspire Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COAST ENTERTAINMENT HOLDINGS and Aspire Mining, you can compare the effects of market volatilities on COAST ENTERTAINMENT and Aspire Mining 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 COAST ENTERTAINMENT with a short position of Aspire Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of COAST ENTERTAINMENT and Aspire Mining.
Diversification Opportunities for COAST ENTERTAINMENT and Aspire Mining
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between COAST and Aspire is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS and Aspire Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspire Mining and COAST 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 COAST ENTERTAINMENT HOLDINGS are associated (or correlated) with Aspire Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspire Mining has no effect on the direction of COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and Aspire Mining go up and down completely randomly.
Pair Corralation between COAST ENTERTAINMENT and Aspire Mining
Assuming the 90 days trading horizon COAST ENTERTAINMENT HOLDINGS is expected to under-perform the Aspire Mining. But the stock apears to be less risky and, when comparing its historical volatility, COAST ENTERTAINMENT HOLDINGS is 2.01 times less risky than Aspire Mining. The stock trades about -0.04 of its potential returns per unit of risk. The Aspire Mining is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 30.00 in Aspire Mining on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Aspire Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COAST ENTERTAINMENT HOLDINGS vs. Aspire Mining
Performance |
| Timeline |
| COAST ENTERTAINMENT |
| Aspire Mining |
COAST ENTERTAINMENT and Aspire Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COAST ENTERTAINMENT and Aspire Mining
The main advantage of trading using opposite COAST ENTERTAINMENT and Aspire Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COAST ENTERTAINMENT position performs unexpectedly, Aspire Mining 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 Aspire Mining will offset losses from the drop in Aspire Mining's long position.| COAST ENTERTAINMENT vs. Viva Leisure | COAST ENTERTAINMENT vs. Toys R Us | COAST ENTERTAINMENT vs. Lendlease Group | COAST ENTERTAINMENT vs. Perseus Mining |
| Aspire Mining vs. Westpac Banking | Aspire Mining vs. Microequities Asset Management | Aspire Mining vs. Steamships Trading | Aspire Mining vs. Argo Investments |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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