Correlation Between Black Rock and COAST ENTERTAINMENT

Can any of the company-specific risk be diversified away by investing in both Black Rock 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 Black Rock and COAST ENTERTAINMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Black Rock Mining and COAST ENTERTAINMENT HOLDINGS, you can compare the effects of market volatilities on Black Rock 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 Black Rock with a short position of COAST ENTERTAINMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Rock and COAST ENTERTAINMENT.

Diversification Opportunities for Black Rock and COAST ENTERTAINMENT

0.75

Correlation Coefficient

Black Rock  COAST ENTERTAINMENT

Poor diversification

The 3 months correlation between Black and COAST is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Black Rock Mining and COAST ENTERTAINMENT HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COAST ENTERTAINMENT and Black Rock 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 Black Rock Mining 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 Black Rock i.e., Black Rock and COAST ENTERTAINMENT go up and down completely randomly.

Pair Corralation between Black Rock and COAST ENTERTAINMENT

Assuming the 90 days trading horizon Black Rock Mining is expected to under-perform the COAST ENTERTAINMENT. In addition to that, Black Rock is 2.36 times more volatile than COAST ENTERTAINMENT HOLDINGS. It trades about -0.13 of its total potential returns per unit of risk. COAST ENTERTAINMENT HOLDINGS is currently generating about -0.1 per unit of volatility. If you would invest  48.00  in COAST ENTERTAINMENT HOLDINGS on December 20, 2024 and sell it today you would lose (6.00) from holding COAST ENTERTAINMENT HOLDINGS or give up 12.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Black Rock Mining  vs.  COAST ENTERTAINMENT HOLDINGS

Black Rock Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Black Rock Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

COAST ENTERTAINMENT

Risk-Adjusted Performance

Very Weak

Over the last 90 days COAST ENTERTAINMENT HOLDINGS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Black Rock and COAST ENTERTAINMENT

The main advantage of trading using opposite Black Rock and COAST ENTERTAINMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Rock 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.

The idea behind Black Rock Mining and COAST ENTERTAINMENT HOLDINGS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.