Correlation Between COAST ENTERTAINMENT and Minbos Resources

Can any of the company-specific risk be diversified away by investing in both COAST ENTERTAINMENT and Minbos Resources 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 Minbos Resources 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 Minbos Resources, you can compare the effects of market volatilities on COAST ENTERTAINMENT and Minbos Resources 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 Minbos Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of COAST ENTERTAINMENT and Minbos Resources.

Diversification Opportunities for COAST ENTERTAINMENT and Minbos Resources

0.48

Correlation Coefficient

COAST ENTERTAINMENT  Minbos Resources

Very weak diversification

The 3 months correlation between COAST and Minbos is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS and Minbos Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minbos Resources 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 Minbos Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minbos Resources has no effect on the direction of COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and Minbos Resources go up and down completely randomly.

Pair Corralation between COAST ENTERTAINMENT and Minbos Resources

Assuming the 90 days trading horizon COAST ENTERTAINMENT HOLDINGS is expected to generate 0.46 times more return on investment than Minbos Resources. However, COAST ENTERTAINMENT HOLDINGS is 2.17 times less risky than Minbos Resources. It trades about -0.12 of its potential returns per unit of risk. Minbos Resources is currently generating about -0.06 per unit of risk. If you would invest  49.00  in COAST ENTERTAINMENT HOLDINGS on December 23, 2024 and sell it today you would lose (7.00) from holding COAST ENTERTAINMENT HOLDINGS or give up 14.29% of portfolio value over 90 days.

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

COAST ENTERTAINMENT HOLDINGS  vs.  Minbos Resources

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 uncertain performance in the last few months, the Stock's technical 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.

Minbos Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Minbos Resources 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 fundamental drivers 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.

Pair Trading with COAST ENTERTAINMENT and Minbos Resources

The main advantage of trading using opposite COAST ENTERTAINMENT and Minbos Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COAST ENTERTAINMENT position performs unexpectedly, Minbos Resources 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 Minbos Resources will offset losses from the drop in Minbos Resources' long position.

The idea behind COAST ENTERTAINMENT HOLDINGS and Minbos Resources 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.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.