Correlation Between Ama Marine and After You

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

By analyzing existing cross correlation between Ama Marine Public and After You Public, you can compare the effects of market volatilities on Ama Marine 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 Ama Marine with a short position of After You. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ama Marine and After You.

Diversification Opportunities for Ama Marine and After You

-0.87

Correlation Coefficient

Ama Marine  After You

Pay attention - limited upside

The 3 months correlation between Ama and After is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ama Marine 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 Ama Marine 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 Ama Marine 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 Ama Marine i.e., Ama Marine and After You go up and down completely randomly.

Pair Corralation between Ama Marine and After You

Assuming the 90 days trading horizon Ama Marine Public is expected to generate 0.36 times more return on investment than After You. However, Ama Marine Public is 2.76 times less risky than After You. It trades about 0.04 of its potential returns per unit of risk. After You Public is currently generating about 0.01 per unit of risk. If you would invest  418.00  in Ama Marine Public on September 29, 2024 and sell it today you would earn a total of  2.00  from holding Ama Marine Public or generate 0.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Ama Marine Public  vs.  After You Public

Ama Marine Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ama Marine Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

After You Public

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in After You Public are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental drivers, After You disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ama Marine and After You

The main advantage of trading using opposite Ama Marine and After You positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ama Marine 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.

The idea behind Ama Marine Public and After You Public 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.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..