Correlation Between CN MODERN and ASURE SOFTWARE
Can any of the company-specific risk be diversified away by investing in both CN MODERN and ASURE SOFTWARE 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 CN MODERN and ASURE SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CN MODERN DAIRY and ASURE SOFTWARE, you can compare the effects of market volatilities on CN MODERN and ASURE SOFTWARE 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 CN MODERN with a short position of ASURE SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CN MODERN and ASURE SOFTWARE.
Diversification Opportunities for CN MODERN and ASURE SOFTWARE
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 07M and ASURE is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding CN MODERN DAIRY and ASURE SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASURE SOFTWARE and CN MODERN 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 CN MODERN DAIRY are associated (or correlated) with ASURE SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASURE SOFTWARE has no effect on the direction of CN MODERN i.e., CN MODERN and ASURE SOFTWARE go up and down completely randomly.
Pair Corralation between CN MODERN and ASURE SOFTWARE
Assuming the 90 days trading horizon CN MODERN is expected to generate 12.15 times less return on investment than ASURE SOFTWARE. In addition to that, CN MODERN is 1.45 times more volatile than ASURE SOFTWARE. It trades about 0.02 of its total potential returns per unit of risk. ASURE SOFTWARE is currently generating about 0.39 per unit of volatility. If you would invest 855.00 in ASURE SOFTWARE on October 12, 2024 and sell it today you would earn a total of 235.00 from holding ASURE SOFTWARE or generate 27.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
CN MODERN DAIRY vs. ASURE SOFTWARE
Performance |
| Timeline |
| CN MODERN DAIRY |
| ASURE SOFTWARE |
CN MODERN and ASURE SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CN MODERN and ASURE SOFTWARE
The main advantage of trading using opposite CN MODERN and ASURE SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CN MODERN position performs unexpectedly, ASURE SOFTWARE 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 ASURE SOFTWARE will offset losses from the drop in ASURE SOFTWARE's long position.| CN MODERN vs. KIMBALL ELECTRONICS | CN MODERN vs. PKSHA TECHNOLOGY INC | CN MODERN vs. Agilent Technologies | CN MODERN vs. CARSALESCOM |
| ASURE SOFTWARE vs. GRIFFIN MINING LTD | ASURE SOFTWARE vs. Zijin Mining Group | ASURE SOFTWARE vs. Tyson Foods | ASURE SOFTWARE vs. CN MODERN DAIRY |
Check out your portfolio center.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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |