Correlation Between Asure Software and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Asure Software and Aegean Airlines 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 Asure Software and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asure Software and Aegean Airlines SA, you can compare the effects of market volatilities on Asure Software and Aegean Airlines 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 Asure Software with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and Aegean Airlines.
Diversification Opportunities for Asure Software and Aegean Airlines
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asure and Aegean is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and Aegean Airlines SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegean Airlines SA and Asure Software 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 Asure Software are associated (or correlated) with Aegean Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegean Airlines SA has no effect on the direction of Asure Software i.e., Asure Software and Aegean Airlines go up and down completely randomly.
Pair Corralation between Asure Software and Aegean Airlines
Given the investment horizon of 90 days Asure Software is expected to generate 1.57 times more return on investment than Aegean Airlines. However, Asure Software is 1.57 times more volatile than Aegean Airlines SA. It trades about 0.24 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about -0.22 per unit of risk. If you would invest 831.00 in Asure Software on September 3, 2024 and sell it today you would earn a total of 148.00 from holding Asure Software or generate 17.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Asure Software vs. Aegean Airlines SA
Performance |
| Timeline |
| Asure Software |
| Aegean Airlines SA |
Asure Software and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asure Software and Aegean Airlines
The main advantage of trading using opposite Asure Software and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, Aegean Airlines 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 Aegean Airlines will offset losses from the drop in Aegean Airlines' long position.| Asure Software vs. Alkami Technology | Asure Software vs. Blackbaud | Asure Software vs. Enfusion | Asure Software vs. Clearwater Analytics Holdings |
| Aegean Airlines vs. Copa Holdings SA | Aegean Airlines vs. United Airlines Holdings | Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. SkyWest |
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
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |