Correlation Between Aftermaster and BB Liquidating

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

By analyzing existing cross correlation between Aftermaster and BB Liquidating B, you can compare the effects of market volatilities on Aftermaster and BB Liquidating 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 Aftermaster with a short position of BB Liquidating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aftermaster and BB Liquidating.

Diversification Opportunities for Aftermaster and BB Liquidating

0.0

Correlation Coefficient

Aftermaster  BB Liquidating

Pay attention - limited upside

The 3 months correlation between Aftermaster and BLIBQ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aftermaster and BB Liquidating B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BB Liquidating B and Aftermaster 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 Aftermaster are associated (or correlated) with BB Liquidating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BB Liquidating B has no effect on the direction of Aftermaster i.e., Aftermaster and BB Liquidating go up and down completely randomly.

Pair Corralation between Aftermaster and BB Liquidating

If you would invest (100.00) in BB Liquidating B on December 21, 2024 and sell it today you would earn a total of  100.00  from holding BB Liquidating B or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Aftermaster  vs.  BB Liquidating B

Aftermaster

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aftermaster has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

BB Liquidating B

Risk-Adjusted Performance

Very Weak

Over the last 90 days BB Liquidating B has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental drivers, BB Liquidating is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Aftermaster and BB Liquidating

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

The idea behind Aftermaster and BB Liquidating B 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.