Correlation Between COAST ENTERTAINMENT and Bell Financial
Can any of the company-specific risk be diversified away by investing in both COAST ENTERTAINMENT and Bell Financial 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 Bell Financial 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 Bell Financial Group, you can compare the effects of market volatilities on COAST ENTERTAINMENT and Bell Financial 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 Bell Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of COAST ENTERTAINMENT and Bell Financial.
Diversification Opportunities for COAST ENTERTAINMENT and Bell Financial
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between COAST and Bell is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS and Bell Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bell Financial Group 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 Bell Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bell Financial Group has no effect on the direction of COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and Bell Financial go up and down completely randomly.
Pair Corralation between COAST ENTERTAINMENT and Bell Financial
Assuming the 90 days trading horizon COAST ENTERTAINMENT HOLDINGS is expected to generate 1.22 times more return on investment than Bell Financial. However, COAST ENTERTAINMENT is 1.22 times more volatile than Bell Financial Group. It trades about 0.15 of its potential returns per unit of risk. Bell Financial Group is currently generating about 0.09 per unit of risk. If you would invest 45.00 in COAST ENTERTAINMENT HOLDINGS on September 12, 2024 and sell it today you would earn a total of 4.00 from holding COAST ENTERTAINMENT HOLDINGS or generate 8.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
COAST ENTERTAINMENT HOLDINGS vs. Bell Financial Group
Performance |
| Timeline |
| COAST ENTERTAINMENT |
| Bell Financial Group |
COAST ENTERTAINMENT and Bell Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COAST ENTERTAINMENT and Bell Financial
The main advantage of trading using opposite COAST ENTERTAINMENT and Bell Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COAST ENTERTAINMENT position performs unexpectedly, Bell Financial 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 Bell Financial will offset losses from the drop in Bell Financial's long position.| COAST ENTERTAINMENT vs. WiseTech Global Limited | COAST ENTERTAINMENT vs. My Foodie Box | COAST ENTERTAINMENT vs. Ras Technology Holdings | COAST ENTERTAINMENT vs. Retail Food Group |
| Bell Financial vs. Aneka Tambang Tbk | Bell Financial vs. Commonwealth Bank | Bell Financial vs. BHP Group Limited | Bell Financial vs. Rio Tinto |
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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