Correlation Between COAST ENTERTAINMENT and Centaurus Metals
Can any of the company-specific risk be diversified away by investing in both COAST ENTERTAINMENT and Centaurus Metals 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 Centaurus Metals 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 Centaurus Metals, you can compare the effects of market volatilities on COAST ENTERTAINMENT and Centaurus Metals 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 Centaurus Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of COAST ENTERTAINMENT and Centaurus Metals.
Diversification Opportunities for COAST ENTERTAINMENT and Centaurus Metals
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between COAST and Centaurus is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS and Centaurus Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centaurus Metals 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 Centaurus Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centaurus Metals has no effect on the direction of COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and Centaurus Metals go up and down completely randomly.
Pair Corralation between COAST ENTERTAINMENT and Centaurus Metals
Assuming the 90 days trading horizon COAST ENTERTAINMENT HOLDINGS is expected to generate 0.63 times more return on investment than Centaurus Metals. However, COAST ENTERTAINMENT HOLDINGS is 1.59 times less risky than Centaurus Metals. It trades about 0.11 of its potential returns per unit of risk. Centaurus Metals is currently generating about 0.03 per unit of risk. If you would invest 43.00 in COAST ENTERTAINMENT HOLDINGS on October 30, 2024 and sell it today you would earn a total of 4.00 from holding COAST ENTERTAINMENT HOLDINGS or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COAST ENTERTAINMENT HOLDINGS vs. Centaurus Metals
Performance |
| Timeline |
| COAST ENTERTAINMENT |
| Centaurus Metals |
COAST ENTERTAINMENT and Centaurus Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COAST ENTERTAINMENT and Centaurus Metals
The main advantage of trading using opposite COAST ENTERTAINMENT and Centaurus Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COAST ENTERTAINMENT position performs unexpectedly, Centaurus Metals 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 Centaurus Metals will offset losses from the drop in Centaurus Metals' long position.| COAST ENTERTAINMENT vs. Vitura Health Limited | COAST ENTERTAINMENT vs. Diversified United Investment | COAST ENTERTAINMENT vs. BKI Investment | COAST ENTERTAINMENT vs. K2 Asset Management |
| Centaurus Metals vs. Kneomedia | Centaurus Metals vs. oOhMedia | Centaurus Metals vs. Flagship Investments | Centaurus Metals vs. Nine Entertainment Co |
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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