Correlation Between After You and XSpring Capital
Can any of the company-specific risk be diversified away by investing in both After You and XSpring 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 After You and XSpring Capital 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 XSpring Capital Public, you can compare the effects of market volatilities on After You and XSpring 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 After You with a short position of XSpring Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of After You and XSpring Capital.
Diversification Opportunities for After You and XSpring Capital
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between After and XSpring is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding After You Public and XSpring Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XSpring Capital 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 XSpring Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XSpring Capital Public has no effect on the direction of After You i.e., After You and XSpring Capital go up and down completely randomly.
Pair Corralation between After You and XSpring Capital
Assuming the 90 days horizon After You Public is expected to generate 11.77 times more return on investment than XSpring Capital. However, After You is 11.77 times more volatile than XSpring Capital Public. It trades about 0.04 of its potential returns per unit of risk. XSpring Capital Public is currently generating about -0.01 per unit of risk. If you would invest 1,079 in After You Public on September 3, 2024 and sell it today you would earn a total of 21.00 from holding After You Public or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
After You Public vs. XSpring Capital Public
Performance |
| Timeline |
| After You Public |
| XSpring Capital Public |
After You and XSpring Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with After You and XSpring Capital
The main advantage of trading using opposite After You and XSpring Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if After You position performs unexpectedly, XSpring 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 XSpring Capital will offset losses from the drop in XSpring Capital'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 |
| XSpring Capital vs. TMBThanachart Bank Public | XSpring Capital vs. Ngern Tid Lor | XSpring Capital vs. Jay Mart Public | XSpring Capital vs. Sri Trang Gloves |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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