Correlation Between After You and Ditto Public
Can any of the company-specific risk be diversified away by investing in both After You and Ditto Public 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 After You and Ditto Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between After You Public and Ditto Public, you can compare the effects of market volatilities on After You and Ditto Public 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 After You with a short position of Ditto Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of After You and Ditto Public.
Diversification Opportunities for After You and Ditto Public
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between After and Ditto is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding After You Public and Ditto Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ditto Public and After You 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 After You Public are associated (or correlated) with Ditto Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ditto Public has no effect on the direction of After You i.e., After You and Ditto Public go up and down completely randomly.
Pair Corralation between After You and Ditto Public
Assuming the 90 days horizon After You Public is expected to generate 22.8 times more return on investment than Ditto Public. However, After You is 22.8 times more volatile than Ditto Public. It trades about 0.08 of its potential returns per unit of risk. Ditto Public is currently generating about 0.02 per unit of risk. If you would invest 795.00 in After You Public on September 1, 2024 and sell it today you would earn a total of 305.00 from holding After You Public or generate 38.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
After You Public vs. Ditto Public
Performance |
| Timeline |
| After You Public |
| Ditto Public |
After You and Ditto Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with After You and Ditto Public
The main advantage of trading using opposite After You and Ditto Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if After You position performs unexpectedly, Ditto Public 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 Ditto Public will offset losses from the drop in Ditto Public's long position.| After You vs. CP ALL Public | After You vs. BTS Group Holdings | After You vs. Minor International Public | After You vs. Airports of Thailand |
| Ditto Public vs. Dohome Public | Ditto Public vs. Beryl 8 Plus | Ditto Public vs. Forth Public | Ditto Public vs. Delta Electronics Public |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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