Correlation Between East Africa and Asure Software
Can any of the company-specific risk be diversified away by investing in both East Africa 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 East Africa and Asure Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between East Africa Metals and Asure Software, you can compare the effects of market volatilities on East Africa 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 East Africa with a short position of Asure Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of East Africa and Asure Software.
Diversification Opportunities for East Africa and Asure Software
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between East and Asure is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding East Africa Metals and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software and East Africa 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 East Africa Metals 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 East Africa i.e., East Africa and Asure Software go up and down completely randomly.
Pair Corralation between East Africa and Asure Software
If you would invest 851.00 in Asure Software on September 2, 2024 and sell it today you would earn a total of 128.00 from holding Asure Software or generate 15.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
East Africa Metals vs. Asure Software
Performance |
| Timeline |
| East Africa Metals |
| Asure Software |
East Africa and Asure Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East Africa and Asure Software
The main advantage of trading using opposite East Africa and Asure Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East Africa 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.| East Africa vs. Pasinex Resources Limited | East Africa vs. Commander Resources | East Africa vs. Forsys Metals Corp | East Africa vs. American CuMo Mining |
| Asure Software vs. Ke Holdings | Asure Software vs. nCino Inc | Asure Software vs. Kingsoft Cloud Holdings | Asure Software vs. Jfrog |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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