Correlation Between Bet-at-home and ASURE SOFTWARE
Can any of the company-specific risk be diversified away by investing in both Bet-at-home 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 Bet-at-home and ASURE SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between bet at home AG and ASURE SOFTWARE, you can compare the effects of market volatilities on Bet-at-home 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 Bet-at-home with a short position of ASURE SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet-at-home and ASURE SOFTWARE.
Diversification Opportunities for Bet-at-home and ASURE SOFTWARE
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bet-at-home and ASURE is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and ASURE SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASURE SOFTWARE and Bet-at-home 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 bet at home AG 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 Bet-at-home i.e., Bet-at-home and ASURE SOFTWARE go up and down completely randomly.
Pair Corralation between Bet-at-home and ASURE SOFTWARE
Assuming the 90 days trading horizon bet at home AG is expected to under-perform the ASURE SOFTWARE. But the stock apears to be less risky and, when comparing its historical volatility, bet at home AG is 1.06 times less risky than ASURE SOFTWARE. The stock trades about -0.04 of its potential returns per unit of risk. The ASURE SOFTWARE is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 740.00 in ASURE SOFTWARE on September 1, 2024 and sell it today you would earn a total of 180.00 from holding ASURE SOFTWARE or generate 24.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
bet at home AG vs. ASURE SOFTWARE
Performance |
| Timeline |
| bet at home |
| ASURE SOFTWARE |
Bet-at-home and ASURE SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet-at-home and ASURE SOFTWARE
The main advantage of trading using opposite Bet-at-home and ASURE SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet-at-home 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.| Bet-at-home vs. SIVERS SEMICONDUCTORS AB | Bet-at-home vs. Darden Restaurants | Bet-at-home vs. Reliance Steel Aluminum | Bet-at-home vs. Q2M Managementberatung AG |
| ASURE SOFTWARE vs. PennyMac Mortgage Investment | ASURE SOFTWARE vs. Autohome ADR | ASURE SOFTWARE vs. bet at home AG | ASURE SOFTWARE vs. NURAN WIRELESS INC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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