Correlation Between COAST ENTERTAINMENT and Wam Capital
Can any of the company-specific risk be diversified away by investing in both COAST ENTERTAINMENT and Wam Capital 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 Wam Capital 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 Wam Capital, you can compare the effects of market volatilities on COAST ENTERTAINMENT and Wam Capital 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 Wam Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of COAST ENTERTAINMENT and Wam Capital.
Diversification Opportunities for COAST ENTERTAINMENT and Wam Capital
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between COAST and Wam is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS and Wam Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wam Capital 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 Wam Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wam Capital has no effect on the direction of COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and Wam Capital go up and down completely randomly.
Pair Corralation between COAST ENTERTAINMENT and Wam Capital
Assuming the 90 days trading horizon COAST ENTERTAINMENT is expected to generate 5.92 times less return on investment than Wam Capital. In addition to that, COAST ENTERTAINMENT is 2.69 times more volatile than Wam Capital. It trades about 0.01 of its total potential returns per unit of risk. Wam Capital is currently generating about 0.14 per unit of volatility. If you would invest 157.00 in Wam Capital on November 1, 2024 and sell it today you would earn a total of 3.00 from holding Wam Capital or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
COAST ENTERTAINMENT HOLDINGS vs. Wam Capital
Performance |
| Timeline |
| COAST ENTERTAINMENT |
| Wam Capital |
COAST ENTERTAINMENT and Wam Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COAST ENTERTAINMENT and Wam Capital
The main advantage of trading using opposite COAST ENTERTAINMENT and Wam Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COAST ENTERTAINMENT position performs unexpectedly, Wam Capital 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 Wam Capital will offset losses from the drop in Wam Capital'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 |
| Wam Capital vs. Infomedia | Wam Capital vs. EROAD | Wam Capital vs. COAST ENTERTAINMENT HOLDINGS | Wam Capital vs. Truscott Mining Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |