Correlation Between Cantor Equity and Asure Software
Can any of the company-specific risk be diversified away by investing in both Cantor Equity 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 Cantor Equity and Asure Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cantor Equity Partners, and Asure Software, you can compare the effects of market volatilities on Cantor Equity 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 Cantor Equity with a short position of Asure Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cantor Equity and Asure Software.
Diversification Opportunities for Cantor Equity and Asure Software
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cantor and Asure is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Cantor Equity Partners, and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software and Cantor Equity 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 Cantor Equity Partners, 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 Cantor Equity i.e., Cantor Equity and Asure Software go up and down completely randomly.
Pair Corralation between Cantor Equity and Asure Software
Considering the 90-day investment horizon Cantor Equity Partners, is expected to generate 0.29 times more return on investment than Asure Software. However, Cantor Equity Partners, is 3.44 times less risky than Asure Software. It trades about -0.03 of its potential returns per unit of risk. Asure Software is currently generating about -0.13 per unit of risk. If you would invest 1,035 in Cantor Equity Partners, on November 29, 2024 and sell it today you would lose (4.00) from holding Cantor Equity Partners, or give up 0.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cantor Equity Partners, vs. Asure Software
Performance |
| Timeline |
| Cantor Equity Partners, |
| Asure Software |
Cantor Equity and Asure Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cantor Equity and Asure Software
The main advantage of trading using opposite Cantor Equity and Asure Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cantor Equity 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.| Cantor Equity vs. Scandinavian Tobacco Group | Cantor Equity vs. Lipocine | Cantor Equity vs. Universal | Cantor Equity vs. Altria Group |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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