Correlation Between BB Liquidating and Aftermaster

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

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

Diversification Opportunities for BB Liquidating and Aftermaster

0.0

Correlation Coefficient

BB Liquidating  Aftermaster

Pay attention - limited upside

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

Pair Corralation between BB Liquidating and Aftermaster

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

BB Liquidating B  vs.  Aftermaster

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.

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.

Pair Trading with BB Liquidating and Aftermaster

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

The idea behind BB Liquidating B and Aftermaster 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.