Correlation Between Asure Software and Dana
Can any of the company-specific risk be diversified away by investing in both Asure Software and Dana 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 Dana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asure Software and Dana Inc, you can compare the effects of market volatilities on Asure Software and Dana 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 Dana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and Dana.
Diversification Opportunities for Asure Software and Dana
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Asure and Dana is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and Dana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Inc 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 Dana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Inc has no effect on the direction of Asure Software i.e., Asure Software and Dana go up and down completely randomly.
Pair Corralation between Asure Software and Dana
Given the investment horizon of 90 days Asure Software is expected to generate 5.37 times less return on investment than Dana. But when comparing it to its historical volatility, Asure Software is 1.34 times less risky than Dana. It trades about 0.02 of its potential returns per unit of risk. Dana Inc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,035 in Dana Inc on September 19, 2024 and sell it today you would earn a total of 211.00 from holding Dana Inc or generate 20.39% 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. Dana Inc
Performance |
| Timeline |
| Asure Software |
| Dana Inc |
Asure Software and Dana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asure Software and Dana
The main advantage of trading using opposite Asure Software and Dana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, Dana 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 Dana will offset losses from the drop in Dana's long position.| Asure Software vs. Swvl Holdings Corp | Asure Software vs. Guardforce AI Co | Asure Software vs. Thayer Ventures Acquisition |
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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