Correlation Between Figs and Asure Software
Can any of the company-specific risk be diversified away by investing in both Figs 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 Figs and Asure Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Figs Inc and Asure Software, you can compare the effects of market volatilities on Figs 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 Figs with a short position of Asure Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Figs and Asure Software.
Diversification Opportunities for Figs and Asure Software
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Figs and Asure is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Figs Inc and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software and Figs 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 Figs Inc 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 Figs i.e., Figs and Asure Software go up and down completely randomly.
Pair Corralation between Figs and Asure Software
Given the investment horizon of 90 days Figs is expected to generate 1.63 times less return on investment than Asure Software. In addition to that, Figs is 1.19 times more volatile than Asure Software. It trades about 0.01 of its total potential returns per unit of risk. Asure Software is currently generating about 0.01 per unit of volatility. If you would invest 991.00 in Asure Software on September 12, 2024 and sell it today you would lose (78.00) from holding Asure Software or give up 7.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Figs Inc vs. Asure Software
Performance |
| Timeline |
| Figs Inc |
| Asure Software |
Figs and Asure Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Figs and Asure Software
The main advantage of trading using opposite Figs and Asure Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Figs 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.The idea behind Figs Inc and Asure Software pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Asure Software vs. Alkami Technology | Asure Software vs. ADEIA P | Asure Software vs. Paycor HCM | Asure Software vs. Appfolio |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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