Correlation Between Asure Software and BRISTOL
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By analyzing existing cross correlation between Asure Software and BRISTOL MYERS SQUIBB CO, you can compare the effects of market volatilities on Asure Software and BRISTOL 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 BRISTOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and BRISTOL.
Diversification Opportunities for Asure Software and BRISTOL
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Asure and BRISTOL is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and BRISTOL MYERS SQUIBB CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRISTOL MYERS SQUIBB 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 BRISTOL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRISTOL MYERS SQUIBB has no effect on the direction of Asure Software i.e., Asure Software and BRISTOL go up and down completely randomly.
Pair Corralation between Asure Software and BRISTOL
Given the investment horizon of 90 days Asure Software is expected to generate 29.72 times less return on investment than BRISTOL. But when comparing it to its historical volatility, Asure Software is 15.51 times less risky than BRISTOL. It trades about 0.02 of its potential returns per unit of risk. BRISTOL MYERS SQUIBB CO is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 10,169 in BRISTOL MYERS SQUIBB CO on September 5, 2024 and sell it today you would earn a total of 245.00 from holding BRISTOL MYERS SQUIBB CO or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 72.93% |
| Values | Daily Returns |
Asure Software vs. BRISTOL MYERS SQUIBB CO
Performance |
| Timeline |
| Asure Software |
| BRISTOL MYERS SQUIBB |
Asure Software and BRISTOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asure Software and BRISTOL
The main advantage of trading using opposite Asure Software and BRISTOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, BRISTOL 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 BRISTOL will offset losses from the drop in BRISTOL's long position.| Asure Software vs. Alkami Technology | Asure Software vs. Blackbaud | Asure Software vs. Enfusion | Asure Software vs. Clearwater Analytics Holdings |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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