Correlation Between Asure Software and Mattel
Can any of the company-specific risk be diversified away by investing in both Asure Software and Mattel 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 Mattel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asure Software and Mattel Inc, you can compare the effects of market volatilities on Asure Software and Mattel 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 Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and Mattel.
Diversification Opportunities for Asure Software and Mattel
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Asure and Mattel is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel 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 Mattel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mattel Inc has no effect on the direction of Asure Software i.e., Asure Software and Mattel go up and down completely randomly.
Pair Corralation between Asure Software and Mattel
Given the investment horizon of 90 days Asure Software is expected to generate 2.11 times more return on investment than Mattel. However, Asure Software is 2.11 times more volatile than Mattel Inc. It trades about 0.03 of its potential returns per unit of risk. Mattel Inc is currently generating about 0.02 per unit of risk. If you would invest 960.00 in Asure Software on August 25, 2024 and sell it today you would earn a total of 5.00 from holding Asure Software or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Asure Software vs. Mattel Inc
Performance |
| Timeline |
| Asure Software |
| Mattel Inc |
Asure Software and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asure Software and Mattel
The main advantage of trading using opposite Asure Software and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, Mattel 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 Mattel will offset losses from the drop in Mattel's long position.| Asure Software vs. OLB Group | Asure Software vs. Friendable | Asure Software vs. Enfusion | Asure Software vs. Trust Stamp |
| Mattel vs. MCBC Holdings | Mattel vs. Marine Products | Mattel vs. Winnebago Industries | Mattel vs. LCI Industries |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |