Correlation Between COAST ENTERTAINMENT and Platinum Asia
Can any of the company-specific risk be diversified away by investing in both COAST ENTERTAINMENT and Platinum Asia 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 Platinum Asia 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 Platinum Asia Investments, you can compare the effects of market volatilities on COAST ENTERTAINMENT and Platinum Asia 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 Platinum Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of COAST ENTERTAINMENT and Platinum Asia.
Diversification Opportunities for COAST ENTERTAINMENT and Platinum Asia
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between COAST and Platinum is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS and Platinum Asia Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Asia Investments 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 Platinum Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Asia Investments has no effect on the direction of COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and Platinum Asia go up and down completely randomly.
Pair Corralation between COAST ENTERTAINMENT and Platinum Asia
Assuming the 90 days trading horizon COAST ENTERTAINMENT HOLDINGS is expected to under-perform the Platinum Asia. In addition to that, COAST ENTERTAINMENT is 2.09 times more volatile than Platinum Asia Investments. It trades about 0.0 of its total potential returns per unit of risk. Platinum Asia Investments is currently generating about 0.04 per unit of volatility. If you would invest 82.00 in Platinum Asia Investments on August 29, 2024 and sell it today you would earn a total of 15.00 from holding Platinum Asia Investments or generate 18.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COAST ENTERTAINMENT HOLDINGS vs. Platinum Asia Investments
Performance |
| Timeline |
| COAST ENTERTAINMENT |
| Platinum Asia Investments |
COAST ENTERTAINMENT and Platinum Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COAST ENTERTAINMENT and Platinum Asia
The main advantage of trading using opposite COAST ENTERTAINMENT and Platinum Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COAST ENTERTAINMENT position performs unexpectedly, Platinum Asia 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 Platinum Asia will offset losses from the drop in Platinum Asia's long position.| COAST ENTERTAINMENT vs. DY6 Metals | COAST ENTERTAINMENT vs. Aristocrat Leisure | COAST ENTERTAINMENT vs. Medical Developments International | COAST ENTERTAINMENT vs. Patriot Battery Metals |
| Platinum Asia vs. Stelar Metals | Platinum Asia vs. Centaurus Metals | Platinum Asia vs. Perseus Mining | Platinum Asia vs. Regal Funds Management |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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