Correlation Between COAST ENTERTAINMENT and Beston Global
Can any of the company-specific risk be diversified away by investing in both COAST ENTERTAINMENT and Beston Global 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 Beston Global 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 Beston Global Food, you can compare the effects of market volatilities on COAST ENTERTAINMENT and Beston Global 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 Beston Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of COAST ENTERTAINMENT and Beston Global.
Diversification Opportunities for COAST ENTERTAINMENT and Beston Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between COAST and Beston is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS and Beston Global Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beston Global Food 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 Beston Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beston Global Food has no effect on the direction of COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and Beston Global go up and down completely randomly.
Pair Corralation between COAST ENTERTAINMENT and Beston Global
Assuming the 90 days trading horizon COAST ENTERTAINMENT HOLDINGS is expected to under-perform the Beston Global. But the stock apears to be less risky and, when comparing its historical volatility, COAST ENTERTAINMENT HOLDINGS is 4.84 times less risky than Beston Global. The stock trades about -0.01 of its potential returns per unit of risk. The Beston Global Food is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 0.70 in Beston Global Food on August 27, 2024 and sell it today you would lose (0.40) from holding Beston Global Food or give up 57.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COAST ENTERTAINMENT HOLDINGS vs. Beston Global Food
Performance |
| Timeline |
| COAST ENTERTAINMENT |
| Beston Global Food |
COAST ENTERTAINMENT and Beston Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COAST ENTERTAINMENT and Beston Global
The main advantage of trading using opposite COAST ENTERTAINMENT and Beston Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COAST ENTERTAINMENT position performs unexpectedly, Beston Global 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 Beston Global will offset losses from the drop in Beston Global's long position.| COAST ENTERTAINMENT vs. Viva Leisure | COAST ENTERTAINMENT vs. Toys R Us | COAST ENTERTAINMENT vs. Westpac Banking | COAST ENTERTAINMENT vs. Origin Energy |
| Beston Global vs. Ainsworth Game Technology | Beston Global vs. Bio Gene Technology | Beston Global vs. Ras Technology Holdings | Beston Global vs. Wt Financial Group |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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