Correlation Between Asure Software and Funko
Can any of the company-specific risk be diversified away by investing in both Asure Software and Funko 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 Funko into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asure Software and Funko Inc, you can compare the effects of market volatilities on Asure Software and Funko 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 Funko. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and Funko.
Diversification Opportunities for Asure Software and Funko
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asure and Funko is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko 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 Funko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Funko Inc has no effect on the direction of Asure Software i.e., Asure Software and Funko go up and down completely randomly.
Pair Corralation between Asure Software and Funko
Given the investment horizon of 90 days Asure Software is expected to under-perform the Funko. But the stock apears to be less risky and, when comparing its historical volatility, Asure Software is 1.15 times less risky than Funko. The stock trades about 0.0 of its potential returns per unit of risk. The Funko Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 952.00 in Funko Inc on November 28, 2024 and sell it today you would earn a total of 337.00 from holding Funko Inc or generate 35.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asure Software vs. Funko Inc
Performance |
| Timeline |
| Asure Software |
| Funko Inc |
Asure Software and Funko Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asure Software and Funko
The main advantage of trading using opposite Asure Software and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, Funko 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 Funko will offset losses from the drop in Funko's long position.| Asure Software vs. Alkami Technology | Asure Software vs. Blackbaud | Asure Software vs. Enfusion | Asure Software vs. Clearwater Analytics Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
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