Correlation Between BTS Group and After You

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

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

Diversification Opportunities for BTS Group and After You

0.45

Correlation Coefficient

BTS Group  After You

Very weak diversification

The 3 months correlation between BTS and After is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding BTS Group Holdings 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 BTS Group 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 BTS Group Holdings 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 BTS Group i.e., BTS Group and After You go up and down completely randomly.

Pair Corralation between BTS Group and After You

Assuming the 90 days trading horizon BTS Group Holdings is expected to generate 1.17 times more return on investment than After You. However, BTS Group is 1.17 times more volatile than After You Public. It trades about 0.21 of its potential returns per unit of risk. After You Public is currently generating about 0.19 per unit of risk. If you would invest  448.00  in BTS Group Holdings on September 5, 2024 and sell it today you would earn a total of  117.00  from holding BTS Group Holdings or generate 26.12% return on investment over 90 days.

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

BTS Group Holdings  vs.  After You Public

BTS Group Holdings

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BTS Group Holdings are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, BTS Group disclosed solid returns over the last few months and may actually be approaching a breakup point.

After You Public

Risk-Adjusted Performance

14 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in After You Public are ranked lower than 14 (%) 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 BTS Group and After You

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

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.