Correlation Between Asure Software and Global E
Can any of the company-specific risk be diversified away by investing in both Asure Software and Global E 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 Global E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asure Software and Global E Online, you can compare the effects of market volatilities on Asure Software and Global E 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 Global E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and Global E.
Diversification Opportunities for Asure Software and Global E
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asure and Global is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and Global E Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global E Online 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 Global E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global E Online has no effect on the direction of Asure Software i.e., Asure Software and Global E go up and down completely randomly.
Pair Corralation between Asure Software and Global E
Given the investment horizon of 90 days Asure Software is expected to generate 2.36 times less return on investment than Global E. In addition to that, Asure Software is 1.02 times more volatile than Global E Online. It trades about 0.03 of its total potential returns per unit of risk. Global E Online is currently generating about 0.07 per unit of volatility. If you would invest 2,233 in Global E Online on August 27, 2024 and sell it today you would earn a total of 2,756 from holding Global E Online or generate 123.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asure Software vs. Global E Online
Performance |
| Timeline |
| Asure Software |
| Global E Online |
Asure Software and Global E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asure Software and Global E
The main advantage of trading using opposite Asure Software and Global E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, Global E 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 Global E will offset losses from the drop in Global E's long position.The idea behind Asure Software and Global E Online 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.| Global E vs. MercadoLibre | Global E vs. PDD Holdings | Global E vs. JD Inc Adr | Global E vs. Alibaba Group Holding |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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