Correlation Between Asure Software and Fidus Investment
Can any of the company-specific risk be diversified away by investing in both Asure Software and Fidus Investment 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 Fidus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asure Software and Fidus Investment Corp, you can compare the effects of market volatilities on Asure Software and Fidus Investment 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 Fidus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and Fidus Investment.
Diversification Opportunities for Asure Software and Fidus Investment
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Asure and Fidus is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and Fidus Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidus Investment Corp 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 Fidus Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidus Investment Corp has no effect on the direction of Asure Software i.e., Asure Software and Fidus Investment go up and down completely randomly.
Pair Corralation between Asure Software and Fidus Investment
Given the investment horizon of 90 days Asure Software is expected to generate 4.38 times more return on investment than Fidus Investment. However, Asure Software is 4.38 times more volatile than Fidus Investment Corp. It trades about 0.2 of its potential returns per unit of risk. Fidus Investment Corp is currently generating about 0.53 per unit of risk. If you would invest 851.00 in Asure Software on September 2, 2024 and sell it today you would earn a total of 128.00 from holding Asure Software or generate 15.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asure Software vs. Fidus Investment Corp
Performance |
| Timeline |
| Asure Software |
| Fidus Investment Corp |
Asure Software and Fidus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asure Software and Fidus Investment
The main advantage of trading using opposite Asure Software and Fidus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, Fidus Investment 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 Fidus Investment will offset losses from the drop in Fidus Investment's long position.| Asure Software vs. Ke Holdings | Asure Software vs. nCino Inc | Asure Software vs. Kingsoft Cloud Holdings | Asure Software vs. Jfrog |
| Fidus Investment vs. Visa Class A | Fidus Investment vs. Diamond Hill Investment | Fidus Investment vs. Distoken Acquisition | Fidus Investment vs. Associated Capital Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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