Correlation Between HNI Corp and Asure Software
Can any of the company-specific risk be diversified away by investing in both HNI Corp 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 HNI Corp and Asure Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HNI Corp and Asure Software, you can compare the effects of market volatilities on HNI Corp 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 HNI Corp with a short position of Asure Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNI Corp and Asure Software.
Diversification Opportunities for HNI Corp and Asure Software
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HNI and Asure is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding HNI Corp and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software and HNI Corp 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 HNI Corp 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 HNI Corp i.e., HNI Corp and Asure Software go up and down completely randomly.
Pair Corralation between HNI Corp and Asure Software
Considering the 90-day investment horizon HNI Corp is expected to generate 0.37 times more return on investment than Asure Software. However, HNI Corp is 2.71 times less risky than Asure Software. It trades about 0.31 of its potential returns per unit of risk. Asure Software is currently generating about 0.04 per unit of risk. If you would invest 4,988 in HNI Corp on August 30, 2024 and sell it today you would earn a total of 639.00 from holding HNI Corp or generate 12.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HNI Corp vs. Asure Software
Performance |
| Timeline |
| HNI Corp |
| Asure Software |
HNI Corp and Asure Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HNI Corp and Asure Software
The main advantage of trading using opposite HNI Corp and Asure Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNI Corp 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 HNI Corp 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. 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |