Correlation Between QYOU Media and Aftermaster

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

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

Diversification Opportunities for QYOU Media and Aftermaster

-0.04

Correlation Coefficient

QYOU Media  Aftermaster

Good diversification

The 3 months correlation between QYOU and Aftermaster is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding QYOU Media and Aftermaster in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aftermaster and QYOU Media 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 QYOU Media 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 QYOU Media i.e., QYOU Media and Aftermaster go up and down completely randomly.

Pair Corralation between QYOU Media and Aftermaster

Assuming the 90 days horizon QYOU Media is expected to generate 0.71 times more return on investment than Aftermaster. However, QYOU Media is 1.41 times less risky than Aftermaster. It trades about 0.04 of its potential returns per unit of risk. Aftermaster is currently generating about -0.13 per unit of risk. If you would invest  2.51  in QYOU Media on December 1, 2024 and sell it today you would lose (0.11) from holding QYOU Media or give up 4.38% of portfolio value over 90 days.

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

QYOU Media  vs.  Aftermaster

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.

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 QYOU Media and Aftermaster

The main advantage of trading using opposite QYOU Media and Aftermaster positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QYOU Media 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 QYOU Media 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.