Correlation Between AGF Management and ASURE SOFTWARE
Can any of the company-specific risk be diversified away by investing in both AGF Management 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 AGF Management and ASURE SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGF Management Limited and ASURE SOFTWARE, you can compare the effects of market volatilities on AGF Management 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 AGF Management with a short position of ASURE SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and ASURE SOFTWARE.
Diversification Opportunities for AGF Management and ASURE SOFTWARE
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AGF and ASURE is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited and ASURE SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASURE SOFTWARE and AGF Management 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 AGF Management Limited 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 AGF Management i.e., AGF Management and ASURE SOFTWARE go up and down completely randomly.
Pair Corralation between AGF Management and ASURE SOFTWARE
Assuming the 90 days horizon AGF Management Limited is expected to under-perform the ASURE SOFTWARE. But the stock apears to be less risky and, when comparing its historical volatility, AGF Management Limited is 3.25 times less risky than ASURE SOFTWARE. The stock trades about -0.09 of its potential returns per unit of risk. The ASURE SOFTWARE is currently generating about 0.39 of returns per unit of risk over similar time horizon. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGF Management Limited vs. ASURE SOFTWARE
Performance |
| Timeline |
| AGF Management |
| ASURE SOFTWARE |
AGF Management and ASURE SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and ASURE SOFTWARE
The main advantage of trading using opposite AGF Management and ASURE SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management 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.| AGF Management vs. Yuexiu Transport Infrastructure | AGF Management vs. TITANIUM TRANSPORTGROUP | AGF Management vs. USWE SPORTS AB | AGF Management vs. Fukuyama Transporting Co |
| ASURE SOFTWARE vs. INTERSHOP Communications Aktiengesellschaft | ASURE SOFTWARE vs. United Natural Foods | ASURE SOFTWARE vs. Singapore Telecommunications Limited | ASURE SOFTWARE vs. EBRO FOODS |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Transaction History View history of all your transactions and understand their impact on performance |