Correlation Between Comanche International and After You

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

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

Diversification Opportunities for Comanche International and After You

-0.9

Correlation Coefficient

Comanche International  After You

Pay attention - limited upside

The 3 months correlation between Comanche and After is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Comanche International 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 Comanche International 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 Comanche International 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 Comanche International i.e., Comanche International and After You go up and down completely randomly.

Pair Corralation between Comanche International and After You

Assuming the 90 days trading horizon Comanche International is expected to generate 34.43 times less return on investment than After You. In addition to that, Comanche International is 7.35 times more volatile than After You Public. It trades about 0.0 of its total potential returns per unit of risk. After You Public is currently generating about 0.2 per unit of volatility. If you would invest  940.00  in After You Public on September 12, 2024 and sell it today you would earn a total of  200.00  from holding After You Public or generate 21.28% return on investment over 90 days.

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

Comanche International Public  vs.  After You Public

Comanche International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Comanche International Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Comanche International is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

After You Public

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in After You Public are ranked lower than 15 (%) 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 Comanche International and After You

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

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.