Correlation Between Air Lease and ASURE SOFTWARE
Can any of the company-specific risk be diversified away by investing in both Air Lease and ASURE SOFTWARE 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 Air Lease and ASURE SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and ASURE SOFTWARE, you can compare the effects of market volatilities on Air Lease and ASURE SOFTWARE 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 Air Lease with a short position of ASURE SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and ASURE SOFTWARE.
Diversification Opportunities for Air Lease and ASURE SOFTWARE
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Air and ASURE is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and ASURE SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASURE SOFTWARE and Air Lease 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 Air Lease are associated (or correlated) with ASURE SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASURE SOFTWARE has no effect on the direction of Air Lease i.e., Air Lease and ASURE SOFTWARE go up and down completely randomly.
Pair Corralation between Air Lease and ASURE SOFTWARE
Assuming the 90 days trading horizon Air Lease is expected to generate 1.27 times less return on investment than ASURE SOFTWARE. But when comparing it to its historical volatility, Air Lease is 1.88 times less risky than ASURE SOFTWARE. It trades about 0.04 of its potential returns per unit of risk. ASURE SOFTWARE is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 740.00 in ASURE SOFTWARE on September 2, 2024 and sell it today you would earn a total of 180.00 from holding ASURE SOFTWARE or generate 24.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. ASURE SOFTWARE
Performance |
| Timeline |
| Air Lease |
| ASURE SOFTWARE |
Air Lease and ASURE SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and ASURE SOFTWARE
The main advantage of trading using opposite Air Lease and ASURE SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, ASURE SOFTWARE 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 ASURE SOFTWARE will offset losses from the drop in ASURE SOFTWARE's long position.| Air Lease vs. Superior Plus Corp | Air Lease vs. NMI Holdings | Air Lease vs. Origin Agritech | Air Lease vs. SIVERS SEMICONDUCTORS AB |
| ASURE SOFTWARE vs. Singapore Telecommunications Limited | ASURE SOFTWARE vs. Wyndham Hotels Resorts | ASURE SOFTWARE vs. SK TELECOM TDADR | ASURE SOFTWARE vs. Meli Hotels International |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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