Correlation Between Asure Software and Calmare Therapeutics
Can any of the company-specific risk be diversified away by investing in both Asure Software and Calmare Therapeutics 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 Calmare Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asure Software and Calmare Therapeutics, you can compare the effects of market volatilities on Asure Software and Calmare Therapeutics 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 Calmare Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and Calmare Therapeutics.
Diversification Opportunities for Asure Software and Calmare Therapeutics
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asure and Calmare is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and Calmare Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calmare Therapeutics 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 Calmare Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calmare Therapeutics has no effect on the direction of Asure Software i.e., Asure Software and Calmare Therapeutics go up and down completely randomly.
Pair Corralation between Asure Software and Calmare Therapeutics
If you would invest 949.00 in Asure Software on September 21, 2024 and sell it today you would lose (35.00) from holding Asure Software or give up 3.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.61% |
| Values | Daily Returns |
Asure Software vs. Calmare Therapeutics
Performance |
| Timeline |
| Asure Software |
| Calmare Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Asure Software and Calmare Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asure Software and Calmare Therapeutics
The main advantage of trading using opposite Asure Software and Calmare Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, Calmare Therapeutics 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 Calmare Therapeutics will offset losses from the drop in Calmare Therapeutics' long position.| Asure Software vs. Swvl Holdings Corp | Asure Software vs. Guardforce AI Co | Asure Software vs. Thayer Ventures Acquisition |
| Calmare Therapeutics vs. Asure Software | Calmare Therapeutics vs. ServiceNow | Calmare Therapeutics vs. Anterix | Calmare Therapeutics vs. Videolocity International |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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