Correlation Between Origin Energy and COAST ENTERTAINMENT
Can any of the company-specific risk be diversified away by investing in both Origin Energy and COAST ENTERTAINMENT 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 Origin Energy and COAST ENTERTAINMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Energy and COAST ENTERTAINMENT HOLDINGS, you can compare the effects of market volatilities on Origin Energy and COAST ENTERTAINMENT 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 Origin Energy with a short position of COAST ENTERTAINMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Energy and COAST ENTERTAINMENT.
Diversification Opportunities for Origin Energy and COAST ENTERTAINMENT
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and COAST is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Origin Energy and COAST ENTERTAINMENT HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COAST ENTERTAINMENT and Origin Energy 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 Origin Energy are associated (or correlated) with COAST ENTERTAINMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COAST ENTERTAINMENT has no effect on the direction of Origin Energy i.e., Origin Energy and COAST ENTERTAINMENT go up and down completely randomly.
Pair Corralation between Origin Energy and COAST ENTERTAINMENT
Assuming the 90 days trading horizon Origin Energy is expected to generate 0.76 times more return on investment than COAST ENTERTAINMENT. However, Origin Energy is 1.31 times less risky than COAST ENTERTAINMENT. It trades about 0.5 of its potential returns per unit of risk. COAST ENTERTAINMENT HOLDINGS is currently generating about -0.06 per unit of risk. If you would invest 962.00 in Origin Energy on August 30, 2024 and sell it today you would earn a total of 118.00 from holding Origin Energy or generate 12.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Origin Energy vs. COAST ENTERTAINMENT HOLDINGS
Performance |
| Timeline |
| Origin Energy |
| COAST ENTERTAINMENT |
Origin Energy and COAST ENTERTAINMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Energy and COAST ENTERTAINMENT
The main advantage of trading using opposite Origin Energy and COAST ENTERTAINMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Energy position performs unexpectedly, COAST ENTERTAINMENT 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 COAST ENTERTAINMENT will offset losses from the drop in COAST ENTERTAINMENT's long position.| Origin Energy vs. Hansen Technologies | Origin Energy vs. Richmond Vanadium Technology | Origin Energy vs. Computershare | Origin Energy vs. Bio Gene Technology |
| COAST ENTERTAINMENT vs. ABACUS STORAGE KING | COAST ENTERTAINMENT vs. Stelar Metals | COAST ENTERTAINMENT vs. Centuria Industrial Reit | COAST ENTERTAINMENT vs. Thorney 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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