Correlation Between Asure Software and China Health | ASUR vs. CHHE

Correlation Between Asure Software and China Health

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Asure Software and China Health 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 Health 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 Health Industries, you can compare the effects of market volatilities on Asure Software and China Health 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 Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and China Health.

Diversification Opportunities for Asure Software and China Health

AsureChinaDiversified AwayAsureChinaDiversified Away100%
-0.06
  Correlation Coefficient

Good diversification

The 3 months correlation between Asure and China is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and China Health Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Health Industries 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 Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Health Industries has no effect on the direction of Asure Software i.e., Asure Software and China Health go up and down completely randomly.

Pair Corralation between Asure Software and China Health

Given the investment horizon of 90 days Asure Software is expected to generate 0.44 times more return on investment than China Health. However, Asure Software is 2.3 times less risky than China Health. It trades about 0.05 of its potential returns per unit of risk. China Health Industries is currently generating about -0.13 per unit of risk. If you would invest  825.00  in Asure Software on September 30, 2024 and sell it today you would earn a total of  110.00  from holding Asure Software or generate 13.33% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Asure Software  vs.  China Health Industries

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -15-10-50510
JavaScript chart by amCharts 3.21.15ASUR CHHE
       Timeline  
Asure Software 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Asure Software are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, Asure Software may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15NovDecDec7.588.599.510
China Health Industries 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days China Health Industries has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
JavaScript chart by amCharts 3.21.15NovDecDec0.280.290.30.310.320.330.340.350.360.37

Asure Software and China Health Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-9.79-7.33-4.87-2.42-0.0412.364.857.349.8312.32 0.020.030.040.05
JavaScript chart by amCharts 3.21.15ASUR CHHE
       Returns  

Pair Trading with Asure Software and China Health

The main advantage of trading using opposite Asure Software and China Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, China Health 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 Health will offset losses from the drop in China Health's long position.
The idea behind Asure Software and China Health Industries pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

Other Complementary Tools

Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance


 

Discover investing ideas

Utilize additional investing modules