Correlation Between COAST ENTERTAINMENT and Credit Clear
Can any of the company-specific risk be diversified away by investing in both COAST ENTERTAINMENT and Credit Clear 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 Credit Clear 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 Credit Clear, you can compare the effects of market volatilities on COAST ENTERTAINMENT and Credit Clear 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 Credit Clear. Check out your portfolio center. Please also check ongoing floating volatility patterns of COAST ENTERTAINMENT and Credit Clear.
Diversification Opportunities for COAST ENTERTAINMENT and Credit Clear
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COAST and Credit is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS and Credit Clear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Clear 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 Credit Clear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Clear has no effect on the direction of COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and Credit Clear go up and down completely randomly.
Pair Corralation between COAST ENTERTAINMENT and Credit Clear
Assuming the 90 days trading horizon COAST ENTERTAINMENT HOLDINGS is expected to generate 0.96 times more return on investment than Credit Clear. However, COAST ENTERTAINMENT HOLDINGS is 1.04 times less risky than Credit Clear. It trades about 0.15 of its potential returns per unit of risk. Credit Clear is currently generating about 0.11 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 | 100.0% |
| Values | Daily Returns |
COAST ENTERTAINMENT HOLDINGS vs. Credit Clear
Performance |
| Timeline |
| COAST ENTERTAINMENT |
| Credit Clear |
COAST ENTERTAINMENT and Credit Clear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COAST ENTERTAINMENT and Credit Clear
The main advantage of trading using opposite COAST ENTERTAINMENT and Credit Clear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COAST ENTERTAINMENT position performs unexpectedly, Credit Clear 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 Credit Clear will offset losses from the drop in Credit Clear'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 |
| Credit Clear vs. Aurelia Metals | Credit Clear vs. DY6 Metals | Credit Clear vs. Centaurus Metals | Credit Clear vs. Black Rock Mining |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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