Correlation Between Aftermaster and QYOU Media

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

By analyzing existing cross correlation between Aftermaster and QYOU Media, you can compare the effects of market volatilities on Aftermaster and QYOU Media 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 QYOU Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aftermaster and QYOU Media.

Diversification Opportunities for Aftermaster and QYOU Media

0.02

Correlation Coefficient

Aftermaster  QYOU Media

Significant diversification

The 3 months correlation between Aftermaster and QYOU is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Aftermaster and QYOU Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QYOU Media 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 QYOU Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QYOU Media has no effect on the direction of Aftermaster i.e., Aftermaster and QYOU Media go up and down completely randomly.

Pair Corralation between Aftermaster and QYOU Media

Given the investment horizon of 90 days Aftermaster is expected to under-perform the QYOU Media. In addition to that, Aftermaster is 1.7 times more volatile than QYOU Media. It trades about -0.13 of its total potential returns per unit of risk. QYOU Media is currently generating about 0.03 per unit of volatility. If you would invest  2.38  in QYOU Media on December 30, 2024 and sell it today you would lose (0.09) from holding QYOU Media or give up 3.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Aftermaster  vs.  QYOU Media

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.

QYOU Media

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in QYOU Media are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, QYOU Media reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aftermaster and QYOU Media

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

The idea behind Aftermaster and QYOU Media 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.