Correlation Between Asure Software and NH Foods
Can any of the company-specific risk be diversified away by investing in both Asure Software and NH Foods 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 NH Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asure Software and NH Foods Ltd, you can compare the effects of market volatilities on Asure Software and NH Foods 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 NH Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and NH Foods.
Diversification Opportunities for Asure Software and NH Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asure and NIPMY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and NH Foods Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Foods 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 NH Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Foods has no effect on the direction of Asure Software i.e., Asure Software and NH Foods go up and down completely randomly.
Pair Corralation between Asure Software and NH Foods
Given the investment horizon of 90 days Asure Software is expected to generate 1.45 times less return on investment than NH Foods. In addition to that, Asure Software is 6.5 times more volatile than NH Foods Ltd. It trades about 0.01 of its total potential returns per unit of risk. NH Foods Ltd is currently generating about 0.08 per unit of volatility. If you would invest 1,418 in NH Foods Ltd on August 27, 2024 and sell it today you would earn a total of 282.00 from holding NH Foods Ltd or generate 19.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asure Software vs. NH Foods Ltd
Performance |
| Timeline |
| Asure Software |
| NH Foods |
Asure Software and NH Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asure Software and NH Foods
The main advantage of trading using opposite Asure Software and NH Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, NH Foods 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 NH Foods will offset losses from the drop in NH Foods' long position.| Asure Software vs. Alkami Technology | Asure Software vs. Blackbaud | Asure Software vs. Enfusion | Asure Software vs. Clearwater Analytics Holdings |
| NH Foods vs. Artisan Consumer Goods | NH Foods vs. The A2 Milk | NH Foods vs. BioAdaptives | NH Foods vs. General Mills |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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