Correlation Between Stock Exchange and After You
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and After You 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 Stock Exchange and After You into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and After You Public, you can compare the effects of market volatilities on Stock Exchange and After You 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 Stock Exchange with a short position of After You. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and After You.
Diversification Opportunities for Stock Exchange and After You
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Stock and After is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and After You Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on After You Public and Stock Exchange 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 Stock Exchange Of are associated (or correlated) with After You. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of After You Public has no effect on the direction of Stock Exchange i.e., Stock Exchange and After You go up and down completely randomly.
Pair Corralation between Stock Exchange and After You
Assuming the 90 days trading horizon Stock Exchange Of is expected to under-perform the After You. But the index apears to be less risky and, when comparing its historical volatility, Stock Exchange Of is 63.49 times less risky than After You. The index trades about -0.07 of its potential returns per unit of risk. The After You Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,050 in After You Public on November 27, 2024 and sell it today you would lose (160.00) from holding After You Public or give up 15.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. After You Public
Performance |
| Timeline |
Stock Exchange and After You Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
After You Public
Pair trading matchups for After You
Pair Trading with Stock Exchange and After You
The main advantage of trading using opposite Stock Exchange and After You positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, After You 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 After You will offset losses from the drop in After You's long position.| Stock Exchange vs. Shangri La Hotel Public | Stock Exchange vs. Siamgas and Petrochemicals | Stock Exchange vs. Turnkey Communication Services | Stock Exchange vs. TRC Construction Public |
| After You vs. CP ALL Public | After You vs. BTS Group Holdings | After You vs. Minor International Public | After You vs. Airports of Thailand |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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