Correlation Between COAST ENTERTAINMENT and Health
Can any of the company-specific risk be diversified away by investing in both COAST ENTERTAINMENT and Health 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 Health 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 Health and Plant, you can compare the effects of market volatilities on COAST ENTERTAINMENT and Health 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 Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of COAST ENTERTAINMENT and Health.
Diversification Opportunities for COAST ENTERTAINMENT and Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between COAST and Health is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS and Health and Plant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Health and Plant 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 Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Health and Plant has no effect on the direction of COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and Health go up and down completely randomly.
Pair Corralation between COAST ENTERTAINMENT and Health
Assuming the 90 days trading horizon COAST ENTERTAINMENT HOLDINGS is expected to generate 1.27 times more return on investment than Health. However, COAST ENTERTAINMENT is 1.27 times more volatile than Health and Plant. It trades about -0.01 of its potential returns per unit of risk. Health and Plant is currently generating about -0.05 per unit of risk. If you would invest 61.00 in COAST ENTERTAINMENT HOLDINGS on September 5, 2024 and sell it today you would lose (14.00) from holding COAST ENTERTAINMENT HOLDINGS or give up 22.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
COAST ENTERTAINMENT HOLDINGS vs. Health and Plant
Performance |
| Timeline |
| COAST ENTERTAINMENT |
| Health and Plant |
COAST ENTERTAINMENT and Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COAST ENTERTAINMENT and Health
The main advantage of trading using opposite COAST ENTERTAINMENT and Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COAST ENTERTAINMENT position performs unexpectedly, Health 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 Health will offset losses from the drop in Health's long position.| COAST ENTERTAINMENT vs. Viva Leisure | COAST ENTERTAINMENT vs. Toys R Us | COAST ENTERTAINMENT vs. Lendlease Group | COAST ENTERTAINMENT vs. Perseus Mining |
| Health vs. Audio Pixels Holdings | Health vs. Norwest Minerals | Health vs. Lindian Resources | Health vs. Resource Base |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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