Correlation Between XSpring Capital and After You
Can any of the company-specific risk be diversified away by investing in both XSpring Capital 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 XSpring Capital and After You into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XSpring Capital Public and After You Public, you can compare the effects of market volatilities on XSpring Capital 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 XSpring Capital with a short position of After You. Check out your portfolio center. Please also check ongoing floating volatility patterns of XSpring Capital and After You.
Diversification Opportunities for XSpring Capital and After You
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between XSpring and After is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding XSpring Capital Public 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 XSpring Capital 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 XSpring Capital Public 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 XSpring Capital i.e., XSpring Capital and After You go up and down completely randomly.
Pair Corralation between XSpring Capital and After You
Assuming the 90 days trading horizon XSpring Capital Public is expected to under-perform the After You. But the stock apears to be less risky and, when comparing its historical volatility, XSpring Capital Public is 30.25 times less risky than After You. The stock trades about -0.02 of its potential returns per unit of risk. The After You Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. 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 |
XSpring Capital Public vs. After You Public
Performance |
| Timeline |
| XSpring Capital Public |
| After You Public |
XSpring Capital and After You Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XSpring Capital and After You
The main advantage of trading using opposite XSpring Capital and After You positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XSpring Capital 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.| XSpring Capital vs. TMBThanachart Bank Public | XSpring Capital vs. Ngern Tid Lor | XSpring Capital vs. Jay Mart Public | XSpring Capital vs. Sri Trang Gloves |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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