Correlation Between Aftermaster and Mike Pike

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

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

Diversification Opportunities for Aftermaster and Mike Pike

0.0

Correlation Coefficient

Aftermaster  Mike Pike

Pay attention - limited upside

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

Pair Corralation between Aftermaster and Mike Pike

If you would invest  0.04  in Mike The Pike on October 1, 2024 and sell it today you would lose (0.02) from holding Mike The Pike or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	85.47%
Values	Daily Returns

Aftermaster  vs.  Mike The Pike

Aftermaster

Risk-Adjusted Performance

0 of 100

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 very healthy basic indicators, Aftermaster is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Mike The Pike

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mike The Pike has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward-looking signals, Mike Pike is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Aftermaster and Mike Pike

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

The idea behind Aftermaster and Mike The Pike 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.