Correlation Between COAST ENTERTAINMENT and Queste Communications
Can any of the company-specific risk be diversified away by investing in both COAST ENTERTAINMENT and Queste Communications 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 Queste Communications 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 Queste Communications, you can compare the effects of market volatilities on COAST ENTERTAINMENT and Queste Communications 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 Queste Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of COAST ENTERTAINMENT and Queste Communications.
Diversification Opportunities for COAST ENTERTAINMENT and Queste Communications
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between COAST and Queste is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS and Queste Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Queste Communications 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 Queste Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Queste Communications has no effect on the direction of COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and Queste Communications go up and down completely randomly.
Pair Corralation between COAST ENTERTAINMENT and Queste Communications
Assuming the 90 days trading horizon COAST ENTERTAINMENT HOLDINGS is expected to generate 0.77 times more return on investment than Queste Communications. However, COAST ENTERTAINMENT HOLDINGS is 1.29 times less risky than Queste Communications. It trades about 0.01 of its potential returns per unit of risk. Queste Communications is currently generating about -0.22 per unit of risk. If you would invest 49.00 in COAST ENTERTAINMENT HOLDINGS on November 5, 2024 and sell it today you would earn a total of 0.00 from holding COAST ENTERTAINMENT HOLDINGS or generate 0.0% 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. Queste Communications
Performance |
| Timeline |
| COAST ENTERTAINMENT |
| Queste Communications |
COAST ENTERTAINMENT and Queste Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COAST ENTERTAINMENT and Queste Communications
The main advantage of trading using opposite COAST ENTERTAINMENT and Queste Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COAST ENTERTAINMENT position performs unexpectedly, Queste Communications 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 Queste Communications will offset losses from the drop in Queste Communications' long position.| COAST ENTERTAINMENT vs. Carnegie Clean Energy | COAST ENTERTAINMENT vs. Zoom2u Technologies | COAST ENTERTAINMENT vs. Maggie Beer Holdings | COAST ENTERTAINMENT vs. Anteris Technologies |
| Queste Communications vs. Aneka Tambang Tbk | Queste Communications vs. Woolworths | Queste Communications vs. Commonwealth Bank | Queste Communications vs. BHP Group Limited |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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