Correlation Between COAST ENTERTAINMENT and Saferoads Holdings

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

Diversification Opportunities for COAST ENTERTAINMENT and Saferoads Holdings

-0.42

Correlation Coefficient

COAST ENTERTAINMENT  Saferoads Holdings

Very good diversification

The 3 months correlation between COAST and Saferoads is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding COAST ENTERTAINMENT HOLDINGS and Saferoads Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saferoads Holdings 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 Saferoads Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saferoads Holdings has no effect on the direction of COAST ENTERTAINMENT i.e., COAST ENTERTAINMENT and Saferoads Holdings go up and down completely randomly.

Pair Corralation between COAST ENTERTAINMENT and Saferoads Holdings

Assuming the 90 days trading horizon COAST ENTERTAINMENT HOLDINGS is expected to under-perform the Saferoads Holdings. But the stock apears to be less risky and, when comparing its historical volatility, COAST ENTERTAINMENT HOLDINGS is 21.56 times less risky than Saferoads Holdings. The stock trades about -0.12 of its potential returns per unit of risk. The Saferoads Holdings is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  4.10  in Saferoads Holdings on December 30, 2024 and sell it today you would earn a total of  13.90  from holding Saferoads Holdings or generate 339.02% return on investment over 90 days.

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

COAST ENTERTAINMENT HOLDINGS  vs.  Saferoads Holdings

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.

Saferoads Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Saferoads Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical indicators, Saferoads Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with COAST ENTERTAINMENT and Saferoads Holdings

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

The idea behind COAST ENTERTAINMENT HOLDINGS and Saferoads 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.