Correlation Between COAST ENTERTAINMENT and Sims
Can any of the company-specific risk be diversified away by investing in both COAST ENTERTAINMENT and Sims 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 Sims 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 Sims, you can compare the effects of market volatilities on COAST ENTERTAINMENT and Sims 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 Sims. Check out your portfolio center. Please also check ongoing floating volatility patterns of COAST ENTERTAINMENT and Sims.
Diversification Opportunities for COAST ENTERTAINMENT and Sims
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between COAST and Sims is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS and Sims in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sims 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 Sims. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sims has no effect on the direction of COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and Sims go up and down completely randomly.
Pair Corralation between COAST ENTERTAINMENT and Sims
Assuming the 90 days trading horizon COAST ENTERTAINMENT HOLDINGS is expected to under-perform the Sims. In addition to that, COAST ENTERTAINMENT is 1.25 times more volatile than Sims. It trades about -0.12 of its total potential returns per unit of risk. Sims is currently generating about 0.24 per unit of volatility. If you would invest 1,187 in Sims on December 28, 2024 and sell it today you would earn a total of 330.00 from holding Sims or generate 27.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 98.41% |
Values | Daily Returns |
COAST ENTERTAINMENT HOLDINGS vs. Sims
Performance |
Timeline |
COAST ENTERTAINMENT |
Sims |
COAST ENTERTAINMENT and Sims Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with COAST ENTERTAINMENT and Sims
The main advantage of trading using opposite COAST ENTERTAINMENT and Sims positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COAST ENTERTAINMENT position performs unexpectedly, Sims 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 Sims will offset losses from the drop in Sims' long position.COAST ENTERTAINMENT vs. Aneka Tambang Tbk | COAST ENTERTAINMENT vs. Macquarie Group | COAST ENTERTAINMENT vs. Commonwealth Bank | COAST ENTERTAINMENT vs. Commonwealth Bank of |
Sims vs. Australian Strategic Materials | Sims vs. Iron Road | Sims vs. Beston Global Food | Sims vs. Aussie Broadband |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |