Correlation Between Asure Software and Hafnia
Can any of the company-specific risk be diversified away by investing in both Asure Software and Hafnia 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 Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asure Software and Hafnia Limited, you can compare the effects of market volatilities on Asure Software and Hafnia 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 Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and Hafnia.
Diversification Opportunities for Asure Software and Hafnia
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Asure and Hafnia is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited 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 Hafnia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hafnia Limited has no effect on the direction of Asure Software i.e., Asure Software and Hafnia go up and down completely randomly.
Pair Corralation between Asure Software and Hafnia
Given the investment horizon of 90 days Asure Software is expected to under-perform the Hafnia. In addition to that, Asure Software is 1.49 times more volatile than Hafnia Limited. It trades about -0.02 of its total potential returns per unit of risk. Hafnia Limited is currently generating about 0.13 per unit of volatility. If you would invest 456.00 in Hafnia Limited on September 12, 2024 and sell it today you would earn a total of 374.00 from holding Hafnia Limited or generate 82.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 64.2% |
| Values | Daily Returns |
Asure Software vs. Hafnia Limited
Performance |
| Timeline |
| Asure Software |
| Hafnia Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Asure Software and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asure Software and Hafnia
The main advantage of trading using opposite Asure Software and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, Hafnia 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 Hafnia will offset losses from the drop in Hafnia's long position.| Asure Software vs. Alkami Technology | Asure Software vs. ADEIA P | Asure Software vs. Paycor HCM | Asure Software vs. Appfolio |
| Hafnia vs. Stepan Company | Hafnia vs. Olympic Steel | Hafnia vs. Jeld Wen Holding | Hafnia vs. Highway Holdings Limited |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Global Correlations Find global opportunities by holding instruments from different markets |