Correlation Between Sixt Leasing and ASURE SOFTWARE
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing 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 Sixt Leasing and ASURE SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt Leasing SE and ASURE SOFTWARE, you can compare the effects of market volatilities on Sixt Leasing 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 Sixt Leasing with a short position of ASURE SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and ASURE SOFTWARE.
Diversification Opportunities for Sixt Leasing and ASURE SOFTWARE
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sixt and ASURE is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and ASURE SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASURE SOFTWARE and Sixt Leasing 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 Sixt Leasing SE 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 Sixt Leasing i.e., Sixt Leasing and ASURE SOFTWARE go up and down completely randomly.
Pair Corralation between Sixt Leasing and ASURE SOFTWARE
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the ASURE SOFTWARE. But the stock apears to be less risky and, when comparing its historical volatility, Sixt Leasing SE is 1.97 times less risky than ASURE SOFTWARE. The stock trades about -0.02 of its potential returns per unit of risk. The ASURE SOFTWARE is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in ASURE SOFTWARE on October 28, 2024 and sell it today you would earn a total of 190.00 from holding ASURE SOFTWARE or generate 19.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. ASURE SOFTWARE
Performance |
| Timeline |
| Sixt Leasing SE |
| ASURE SOFTWARE |
Sixt Leasing and ASURE SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and ASURE SOFTWARE
The main advantage of trading using opposite Sixt Leasing and ASURE SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing 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.| Sixt Leasing vs. Nippon Steel | Sixt Leasing vs. Motorcar Parts of | Sixt Leasing vs. CARSALESCOM | Sixt Leasing vs. Commercial Vehicle Group |
| ASURE SOFTWARE vs. Apple Inc | ASURE SOFTWARE vs. Apple Inc | ASURE SOFTWARE vs. Apple Inc | ASURE SOFTWARE vs. Apple Inc |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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