Correlation Between COAST ENTERTAINMENT and Black Rock
Can any of the company-specific risk be diversified away by investing in both COAST ENTERTAINMENT and Black Rock 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 Black Rock 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 Black Rock Mining, you can compare the effects of market volatilities on COAST ENTERTAINMENT and Black Rock 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 Black Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of COAST ENTERTAINMENT and Black Rock.
Diversification Opportunities for COAST ENTERTAINMENT and Black Rock
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between COAST and Black is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS and Black Rock Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Rock 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 Black Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Rock Mining has no effect on the direction of COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and Black Rock go up and down completely randomly.
Pair Corralation between COAST ENTERTAINMENT and Black Rock
Assuming the 90 days trading horizon COAST ENTERTAINMENT HOLDINGS is expected to generate 0.6 times more return on investment than Black Rock. However, COAST ENTERTAINMENT HOLDINGS is 1.66 times less risky than Black Rock. It trades about 0.03 of its potential returns per unit of risk. Black Rock Mining is currently generating about -0.14 per unit of risk. If you would invest 46.00 in COAST ENTERTAINMENT HOLDINGS on September 12, 2024 and sell it today you would earn a total of 1.00 from holding COAST ENTERTAINMENT HOLDINGS or generate 2.17% 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. Black Rock Mining
Performance |
| Timeline |
| COAST ENTERTAINMENT |
| Black Rock Mining |
COAST ENTERTAINMENT and Black Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COAST ENTERTAINMENT and Black Rock
The main advantage of trading using opposite COAST ENTERTAINMENT and Black Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COAST ENTERTAINMENT position performs unexpectedly, Black Rock 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 Black Rock will offset losses from the drop in Black Rock'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 |
| Black Rock vs. Northern Star Resources | Black Rock vs. Evolution Mining | Black Rock vs. Bluescope Steel | Black Rock vs. Sandfire Resources NL |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |