Correlation Between FTAC Emerald and Asure Software
Can any of the company-specific risk be diversified away by investing in both FTAC Emerald 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 FTAC Emerald and Asure Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FTAC Emerald Acquisition and Asure Software, you can compare the effects of market volatilities on FTAC Emerald 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 FTAC Emerald with a short position of Asure Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAC Emerald and Asure Software.
Diversification Opportunities for FTAC Emerald and Asure Software
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FTAC and Asure is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding FTAC Emerald Acquisition and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software and FTAC Emerald 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 FTAC Emerald Acquisition 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 FTAC Emerald i.e., FTAC Emerald and Asure Software go up and down completely randomly.
Pair Corralation between FTAC Emerald and Asure Software
Assuming the 90 days horizon FTAC Emerald Acquisition is expected to generate 5.58 times more return on investment than Asure Software. However, FTAC Emerald is 5.58 times more volatile than Asure Software. It trades about 0.33 of its potential returns per unit of risk. Asure Software is currently generating about 0.01 per unit of risk. If you would invest 18.00 in FTAC Emerald Acquisition on September 1, 2024 and sell it today you would earn a total of 52.00 from holding FTAC Emerald Acquisition or generate 288.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FTAC Emerald Acquisition vs. Asure Software
Performance |
| Timeline |
| FTAC Emerald Acquisition |
| Asure Software |
FTAC Emerald and Asure Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAC Emerald and Asure Software
The main advantage of trading using opposite FTAC Emerald and Asure Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAC Emerald 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.| FTAC Emerald vs. ServiceNow | FTAC Emerald vs. CECO Environmental Corp | FTAC Emerald vs. Tianjin Capital Environmental | FTAC Emerald vs. Allegheny Technologies Incorporated |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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