Correlation Between COAST ENTERTAINMENT and Globe Metals
Can any of the company-specific risk be diversified away by investing in both COAST ENTERTAINMENT and Globe 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 Globe 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 Globe Metals Mining, you can compare the effects of market volatilities on COAST ENTERTAINMENT and Globe 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 Globe Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of COAST ENTERTAINMENT and Globe Metals.
Diversification Opportunities for COAST ENTERTAINMENT and Globe Metals
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COAST and Globe is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS and Globe Metals Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globe Metals 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 Globe Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globe Metals Mining has no effect on the direction of COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and Globe Metals go up and down completely randomly.
Pair Corralation between COAST ENTERTAINMENT and Globe Metals
Assuming the 90 days trading horizon COAST ENTERTAINMENT HOLDINGS is expected to under-perform the Globe Metals. But the stock apears to be less risky and, when comparing its historical volatility, COAST ENTERTAINMENT HOLDINGS is 2.37 times less risky than Globe Metals. The stock trades about -0.01 of its potential returns per unit of risk. The Globe Metals Mining is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 7.06 in Globe Metals Mining on October 14, 2024 and sell it today you would lose (2.96) from holding Globe Metals Mining or give up 41.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COAST ENTERTAINMENT HOLDINGS vs. Globe Metals Mining
Performance |
| Timeline |
| COAST ENTERTAINMENT |
| Globe Metals Mining |
COAST ENTERTAINMENT and Globe Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COAST ENTERTAINMENT and Globe Metals
The main advantage of trading using opposite COAST ENTERTAINMENT and Globe Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COAST ENTERTAINMENT position performs unexpectedly, Globe 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 Globe Metals will offset losses from the drop in Globe Metals' long position.| COAST ENTERTAINMENT vs. Argo Investments | COAST ENTERTAINMENT vs. Flagship Investments | COAST ENTERTAINMENT vs. MFF Capital Investments | COAST ENTERTAINMENT vs. Garda Diversified Ppty |
| Globe Metals vs. Skycity Entertainment Group | Globe Metals vs. COAST ENTERTAINMENT HOLDINGS | Globe Metals vs. Sports Entertainment Group | Globe 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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