Correlation Between CeoTronics and ASURE SOFTWARE
Can any of the company-specific risk be diversified away by investing in both CeoTronics 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 CeoTronics and ASURE SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CeoTronics AG and ASURE SOFTWARE, you can compare the effects of market volatilities on CeoTronics 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 CeoTronics with a short position of ASURE SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CeoTronics and ASURE SOFTWARE.
Diversification Opportunities for CeoTronics and ASURE SOFTWARE
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CeoTronics and ASURE is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding CeoTronics AG and ASURE SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASURE SOFTWARE and CeoTronics 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 CeoTronics AG 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 CeoTronics i.e., CeoTronics and ASURE SOFTWARE go up and down completely randomly.
Pair Corralation between CeoTronics and ASURE SOFTWARE
Assuming the 90 days trading horizon CeoTronics AG is expected to under-perform the ASURE SOFTWARE. But the stock apears to be less risky and, when comparing its historical volatility, CeoTronics AG is 2.03 times less risky than ASURE SOFTWARE. The stock trades about -0.28 of its potential returns per unit of risk. The ASURE SOFTWARE is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 855.00 in ASURE SOFTWARE on October 12, 2024 and sell it today you would earn a total of 235.00 from holding ASURE SOFTWARE or generate 27.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CeoTronics AG vs. ASURE SOFTWARE
Performance |
| Timeline |
| CeoTronics AG |
| ASURE SOFTWARE |
CeoTronics and ASURE SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CeoTronics and ASURE SOFTWARE
The main advantage of trading using opposite CeoTronics and ASURE SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CeoTronics 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.| CeoTronics vs. Shenzhen Investment Limited | CeoTronics vs. GOLD ROAD RES | CeoTronics vs. Air Transport Services | CeoTronics vs. New Residential Investment |
| ASURE SOFTWARE vs. INTERSHOP Communications Aktiengesellschaft | ASURE SOFTWARE vs. United Natural Foods | ASURE SOFTWARE vs. Singapore Telecommunications Limited | ASURE SOFTWARE vs. EBRO FOODS |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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