Correlation Between Asure Software and Fluent
Can any of the company-specific risk be diversified away by investing in both Asure Software and Fluent 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 Fluent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asure Software and Fluent Inc, you can compare the effects of market volatilities on Asure Software and Fluent 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 Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and Fluent.
Diversification Opportunities for Asure Software and Fluent
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Asure and Fluent is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent 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 Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of Asure Software i.e., Asure Software and Fluent go up and down completely randomly.
Pair Corralation between Asure Software and Fluent
Given the investment horizon of 90 days Asure Software is expected to generate 1.03 times more return on investment than Fluent. However, Asure Software is 1.03 times more volatile than Fluent Inc. It trades about 0.03 of its potential returns per unit of risk. Fluent Inc is currently generating about -0.05 per unit of risk. If you would invest 963.00 in Asure Software on August 27, 2024 and sell it today you would earn a total of 2.00 from holding Asure Software or generate 0.21% 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. Fluent Inc
Performance |
| Timeline |
| Asure Software |
| Fluent Inc |
Asure Software and Fluent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asure Software and Fluent
The main advantage of trading using opposite Asure Software and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent's long position.The idea behind Asure Software and Fluent Inc 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.| Fluent vs. Mirriad Advertising plc | Fluent vs. INEO Tech Corp | Fluent vs. Innovid Corp | Fluent vs. Townsquare Media |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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