Correlation Between Asure Software and FTAI Aviation
Can any of the company-specific risk be diversified away by investing in both Asure Software and FTAI Aviation 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 FTAI Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asure Software and FTAI Aviation Ltd, you can compare the effects of market volatilities on Asure Software and FTAI Aviation 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 FTAI Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and FTAI Aviation.
Diversification Opportunities for Asure Software and FTAI Aviation
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asure and FTAI is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and FTAI Aviation Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Aviation 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 FTAI Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAI Aviation has no effect on the direction of Asure Software i.e., Asure Software and FTAI Aviation go up and down completely randomly.
Pair Corralation between Asure Software and FTAI Aviation
Given the investment horizon of 90 days Asure Software is expected to generate 3.56 times more return on investment than FTAI Aviation. However, Asure Software is 3.56 times more volatile than FTAI Aviation Ltd. It trades about 0.06 of its potential returns per unit of risk. FTAI Aviation Ltd is currently generating about 0.06 per unit of risk. If you would invest 870.00 in Asure Software on September 12, 2024 and sell it today you would earn a total of 85.00 from holding Asure Software or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Asure Software vs. FTAI Aviation Ltd
Performance |
| Timeline |
| Asure Software |
| FTAI Aviation |
Asure Software and FTAI Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asure Software and FTAI Aviation
The main advantage of trading using opposite Asure Software and FTAI Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, FTAI Aviation 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 FTAI Aviation will offset losses from the drop in FTAI Aviation's long position.| Asure Software vs. Alkami Technology | Asure Software vs. Blackbaud | Asure Software vs. Enfusion | Asure Software vs. Clearwater Analytics Holdings |
| FTAI Aviation vs. Empresa Distribuidora y | FTAI Aviation vs. United Utilities Group | FTAI Aviation vs. Treasury Wine Estates | FTAI Aviation vs. China Tontine Wines |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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