Correlation Between Asure Software and Integral
Can any of the company-specific risk be diversified away by investing in both Asure Software and Integral 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 Integral into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asure Software and Integral Ad Science, you can compare the effects of market volatilities on Asure Software and Integral 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 Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and Integral.
Diversification Opportunities for Asure Software and Integral
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Asure and Integral is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science 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 Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of Asure Software i.e., Asure Software and Integral go up and down completely randomly.
Pair Corralation between Asure Software and Integral
Given the investment horizon of 90 days Asure Software is expected to generate 1.24 times more return on investment than Integral. However, Asure Software is 1.24 times more volatile than Integral Ad Science. It trades about 0.03 of its potential returns per unit of risk. Integral Ad Science is currently generating about -0.06 per unit of risk. If you would invest 963.00 in Asure Software on August 29, 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. Integral Ad Science
Performance |
| Timeline |
| Asure Software |
| Integral Ad Science |
Asure Software and Integral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asure Software and Integral
The main advantage of trading using opposite Asure Software and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, Integral 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 Integral will offset losses from the drop in Integral's long position.The idea behind Asure Software and Integral Ad Science 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.| Integral vs. Mirriad Advertising plc | Integral vs. INEO Tech Corp | Integral vs. Innovid Corp | Integral 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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