Correlation Between Asure Software and China Gas
Can any of the company-specific risk be diversified away by investing in both Asure Software and China Gas 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 China Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asure Software and China Gas Holdings, you can compare the effects of market volatilities on Asure Software and China Gas 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 China Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and China Gas.
Diversification Opportunities for Asure Software and China Gas
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Asure and China is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and China Gas Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Gas Holdings 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 China Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Gas Holdings has no effect on the direction of Asure Software i.e., Asure Software and China Gas go up and down completely randomly.
Pair Corralation between Asure Software and China Gas
Given the investment horizon of 90 days Asure Software is expected to generate 0.82 times more return on investment than China Gas. However, Asure Software is 1.23 times less risky than China Gas. It trades about 0.08 of its potential returns per unit of risk. China Gas Holdings is currently generating about 0.01 per unit of risk. If you would invest 913.00 in Asure Software on September 14, 2024 and sell it today you would earn a total of 33.00 from holding Asure Software or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asure Software vs. China Gas Holdings
Performance |
| Timeline |
| Asure Software |
| China Gas Holdings |
Asure Software and China Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asure Software and China Gas
The main advantage of trading using opposite Asure Software and China Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, China Gas 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 China Gas will offset losses from the drop in China Gas' long position.| Asure Software vs. Dave Warrants | Asure Software vs. Swvl Holdings Corp | Asure Software vs. Guardforce AI Co | Asure Software vs. Thayer Ventures Acquisition |
| China Gas vs. Inflection Point Acquisition | China Gas vs. SEI Investments | China Gas vs. Asure Software | China Gas vs. Paysafe |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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