Correlation Between COAST ENTERTAINMENT and Step One
Can any of the company-specific risk be diversified away by investing in both COAST ENTERTAINMENT and Step One 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 Step One 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 Step One Clothing, you can compare the effects of market volatilities on COAST ENTERTAINMENT and Step One 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 Step One. Check out your portfolio center. Please also check ongoing floating volatility patterns of COAST ENTERTAINMENT and Step One.
Diversification Opportunities for COAST ENTERTAINMENT and Step One
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between COAST and Step is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS and Step One Clothing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Step One Clothing 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 Step One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Step One Clothing has no effect on the direction of COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and Step One go up and down completely randomly.
Pair Corralation between COAST ENTERTAINMENT and Step One
Assuming the 90 days trading horizon COAST ENTERTAINMENT HOLDINGS is expected to under-perform the Step One. But the stock apears to be less risky and, when comparing its historical volatility, COAST ENTERTAINMENT HOLDINGS is 1.47 times less risky than Step One. The stock trades about -0.02 of its potential returns per unit of risk. The Step One Clothing is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 136.00 in Step One Clothing on September 3, 2024 and sell it today you would earn a total of 4.00 from holding Step One Clothing or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COAST ENTERTAINMENT HOLDINGS vs. Step One Clothing
Performance |
| Timeline |
| COAST ENTERTAINMENT |
| Step One Clothing |
COAST ENTERTAINMENT and Step One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COAST ENTERTAINMENT and Step One
The main advantage of trading using opposite COAST ENTERTAINMENT and Step One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COAST ENTERTAINMENT position performs unexpectedly, Step One 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 Step One will offset losses from the drop in Step One's long position.| COAST ENTERTAINMENT vs. Viva Leisure | COAST ENTERTAINMENT vs. Toys R Us | COAST ENTERTAINMENT vs. Ecofibre | COAST ENTERTAINMENT vs. Champion Iron |
| Step One vs. Perpetual Credit Income | Step One vs. Alto Metals | Step One vs. Finexia Financial Group | Step One vs. G8 Education |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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