Correlation Between COAST ENTERTAINMENT and Regis Healthcare
Can any of the company-specific risk be diversified away by investing in both COAST ENTERTAINMENT and Regis Healthcare 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 Regis Healthcare 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 Regis Healthcare, you can compare the effects of market volatilities on COAST ENTERTAINMENT and Regis Healthcare 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 Regis Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of COAST ENTERTAINMENT and Regis Healthcare.
Diversification Opportunities for COAST ENTERTAINMENT and Regis Healthcare
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between COAST and Regis is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS and Regis Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regis Healthcare 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 Regis Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regis Healthcare has no effect on the direction of COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and Regis Healthcare go up and down completely randomly.
Pair Corralation between COAST ENTERTAINMENT and Regis Healthcare
Assuming the 90 days trading horizon COAST ENTERTAINMENT HOLDINGS is expected to under-perform the Regis Healthcare. In addition to that, COAST ENTERTAINMENT is 1.13 times more volatile than Regis Healthcare. It trades about -0.01 of its total potential returns per unit of risk. Regis Healthcare is currently generating about 0.13 per unit of volatility. If you would invest 183.00 in Regis Healthcare on September 5, 2024 and sell it today you would earn a total of 477.00 from holding Regis Healthcare or generate 260.66% 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. Regis Healthcare
Performance |
| Timeline |
| COAST ENTERTAINMENT |
| Regis Healthcare |
COAST ENTERTAINMENT and Regis Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COAST ENTERTAINMENT and Regis Healthcare
The main advantage of trading using opposite COAST ENTERTAINMENT and Regis Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COAST ENTERTAINMENT position performs unexpectedly, Regis Healthcare 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 Regis Healthcare will offset losses from the drop in Regis Healthcare's long position.| COAST ENTERTAINMENT vs. Viva Leisure | COAST ENTERTAINMENT vs. Toys R Us | COAST ENTERTAINMENT vs. Lendlease Group | COAST ENTERTAINMENT vs. Perseus Mining |
| Regis Healthcare vs. Macquarie Group | Regis Healthcare vs. Macquarie Group Ltd | Regis Healthcare vs. Commonwealth Bank | Regis Healthcare vs. Rio Tinto |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |