Correlation Between COAST ENTERTAINMENT and OOhMedia
Can any of the company-specific risk be diversified away by investing in both COAST ENTERTAINMENT and OOhMedia 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 OOhMedia 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 oOhMedia, you can compare the effects of market volatilities on COAST ENTERTAINMENT and OOhMedia 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 OOhMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of COAST ENTERTAINMENT and OOhMedia.
Diversification Opportunities for COAST ENTERTAINMENT and OOhMedia
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between COAST and OOhMedia is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS and oOhMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on oOhMedia 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 OOhMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of oOhMedia has no effect on the direction of COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and OOhMedia go up and down completely randomly.
Pair Corralation between COAST ENTERTAINMENT and OOhMedia
Assuming the 90 days trading horizon COAST ENTERTAINMENT HOLDINGS is expected to generate 1.73 times more return on investment than OOhMedia. However, COAST ENTERTAINMENT is 1.73 times more volatile than oOhMedia. It trades about -0.02 of its potential returns per unit of risk. oOhMedia is currently generating about -0.21 per unit of risk. If you would invest 47.00 in COAST ENTERTAINMENT HOLDINGS on September 13, 2024 and sell it today you would lose (1.00) from holding COAST ENTERTAINMENT HOLDINGS or give up 2.13% 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. oOhMedia
Performance |
| Timeline |
| COAST ENTERTAINMENT |
| oOhMedia |
COAST ENTERTAINMENT and OOhMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COAST ENTERTAINMENT and OOhMedia
The main advantage of trading using opposite COAST ENTERTAINMENT and OOhMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COAST ENTERTAINMENT position performs unexpectedly, OOhMedia 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 OOhMedia will offset losses from the drop in OOhMedia's long position.| COAST ENTERTAINMENT vs. Argo Investments | COAST ENTERTAINMENT vs. Charter Hall Education | COAST ENTERTAINMENT vs. Carlton Investments | COAST ENTERTAINMENT vs. REGAL ASIAN INVESTMENTS |
| OOhMedia vs. Auctus Alternative Investments | OOhMedia vs. Platinum Asia Investments | OOhMedia vs. Garda Diversified Ppty | OOhMedia vs. Gold Road Resources |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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