Correlation Between Probility Media and Coastal Capital

Can any of the company-specific risk be diversified away by investing in both Probility Media and Coastal Capital 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 Probility Media and Coastal Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Probility Media Corp and Coastal Capital Acq, you can compare the effects of market volatilities on Probility Media and Coastal Capital 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 Probility Media with a short position of Coastal Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Probility Media and Coastal Capital.

Diversification Opportunities for Probility Media and Coastal Capital

-0.17

Correlation Coefficient

Probility Media  Coastal Capital

Good diversification

The 3 months correlation between Probility and Coastal is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Probility Media Corp and Coastal Capital Acq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coastal Capital Acq and Probility Media 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 Probility Media Corp are associated (or correlated) with Coastal Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coastal Capital Acq has no effect on the direction of Probility Media i.e., Probility Media and Coastal Capital go up and down completely randomly.

Pair Corralation between Probility Media and Coastal Capital

Given the investment horizon of 90 days Probility Media Corp is expected to generate 14.89 times more return on investment than Coastal Capital. However, Probility Media is 14.89 times more volatile than Coastal Capital Acq. It trades about 0.29 of its potential returns per unit of risk. Coastal Capital Acq is currently generating about 0.07 per unit of risk. If you would invest  0.01  in Probility Media Corp on May 21, 2025 and sell it today you would earn a total of  0.00  from holding Probility Media Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Probility Media Corp  vs.  Coastal Capital Acq

Probility Media Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Probility Media Corp are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Probility Media sustained solid returns over the last few months and may actually be approaching a breakup point.

Coastal Capital Acq

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Coastal Capital Acq are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Coastal Capital revealed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Probility Media and Coastal Capital

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

The idea behind Probility Media Corp and Coastal Capital Acq 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.