Correlation Between Carmat SA and ASURE SOFTWARE
Can any of the company-specific risk be diversified away by investing in both Carmat SA 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 Carmat SA and ASURE SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carmat SA and ASURE SOFTWARE, you can compare the effects of market volatilities on Carmat SA 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 Carmat SA with a short position of ASURE SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carmat SA and ASURE SOFTWARE.
Diversification Opportunities for Carmat SA and ASURE SOFTWARE
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carmat and ASURE is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Carmat SA and ASURE SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASURE SOFTWARE and Carmat SA 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 Carmat SA 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 Carmat SA i.e., Carmat SA and ASURE SOFTWARE go up and down completely randomly.
Pair Corralation between Carmat SA and ASURE SOFTWARE
Assuming the 90 days horizon Carmat SA is expected to under-perform the ASURE SOFTWARE. In addition to that, Carmat SA is 1.04 times more volatile than ASURE SOFTWARE. It trades about -0.24 of its total potential returns per unit of risk. ASURE SOFTWARE is currently generating about 0.04 per unit of volatility. If you would invest 900.00 in ASURE SOFTWARE on August 29, 2024 and sell it today you would earn a total of 20.00 from holding ASURE SOFTWARE or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carmat SA vs. ASURE SOFTWARE
Performance |
| Timeline |
| Carmat SA |
| ASURE SOFTWARE |
Carmat SA and ASURE SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carmat SA and ASURE SOFTWARE
The main advantage of trading using opposite Carmat SA and ASURE SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carmat SA 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.| Carmat SA vs. Rayonier Advanced Materials | Carmat SA vs. GOODYEAR T RUBBER | Carmat SA vs. Compagnie Plastic Omnium | Carmat SA vs. ALTAIR RES INC |
| ASURE SOFTWARE vs. Apple Inc | ASURE SOFTWARE vs. Apple Inc | ASURE SOFTWARE vs. Superior Plus Corp | ASURE SOFTWARE vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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