Correlation Between COAST ENTERTAINMENT and Viva Leisure
Can any of the company-specific risk be diversified away by investing in both COAST ENTERTAINMENT and Viva Leisure 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 Viva Leisure 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 Viva Leisure, you can compare the effects of market volatilities on COAST ENTERTAINMENT and Viva Leisure 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 Viva Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of COAST ENTERTAINMENT and Viva Leisure.
Diversification Opportunities for COAST ENTERTAINMENT and Viva Leisure
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between COAST and Viva is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS and Viva Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viva Leisure 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 Viva Leisure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viva Leisure has no effect on the direction of COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and Viva Leisure go up and down completely randomly.
Pair Corralation between COAST ENTERTAINMENT and Viva Leisure
Assuming the 90 days trading horizon COAST ENTERTAINMENT HOLDINGS is expected to under-perform the Viva Leisure. In addition to that, COAST ENTERTAINMENT is 1.17 times more volatile than Viva Leisure. It trades about -0.01 of its total potential returns per unit of risk. Viva Leisure is currently generating about 0.03 per unit of volatility. If you would invest 114.00 in Viva Leisure on November 1, 2024 and sell it today you would earn a total of 28.00 from holding Viva Leisure or generate 24.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COAST ENTERTAINMENT HOLDINGS vs. Viva Leisure
Performance |
| Timeline |
| COAST ENTERTAINMENT |
| Viva Leisure |
COAST ENTERTAINMENT and Viva Leisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COAST ENTERTAINMENT and Viva Leisure
The main advantage of trading using opposite COAST ENTERTAINMENT and Viva Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COAST ENTERTAINMENT position performs unexpectedly, Viva Leisure 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 Viva Leisure will offset losses from the drop in Viva Leisure's long position.| COAST ENTERTAINMENT vs. BKI Investment | COAST ENTERTAINMENT vs. MFF Capital Investments | COAST ENTERTAINMENT vs. Hudson Investment Group | COAST ENTERTAINMENT vs. Perseus Mining |
| Viva Leisure vs. Technology One | Viva Leisure vs. Thorney Technologies | Viva Leisure vs. EROAD | Viva Leisure vs. Constellation Technologies |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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