Correlation Between National CineMedia and Asure Software
Can any of the company-specific risk be diversified away by investing in both National CineMedia 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 National CineMedia and Asure Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Asure Software, you can compare the effects of market volatilities on National CineMedia 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 National CineMedia with a short position of Asure Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Asure Software.
Diversification Opportunities for National CineMedia and Asure Software
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and Asure is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software and National CineMedia 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 National CineMedia 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 National CineMedia i.e., National CineMedia and Asure Software go up and down completely randomly.
Pair Corralation between National CineMedia and Asure Software
Given the investment horizon of 90 days National CineMedia is expected to generate 1.29 times less return on investment than Asure Software. In addition to that, National CineMedia is 1.01 times more volatile than Asure Software. It trades about 0.08 of its total potential returns per unit of risk. Asure Software is currently generating about 0.1 per unit of volatility. If you would invest 876.00 in Asure Software on November 3, 2024 and sell it today you would earn a total of 306.00 from holding Asure Software or generate 34.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National CineMedia vs. Asure Software
Performance |
| Timeline |
| National CineMedia |
| Asure Software |
National CineMedia and Asure Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and Asure Software
The main advantage of trading using opposite National CineMedia and Asure Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia 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.| National CineMedia vs. MGO Global Common | National CineMedia vs. Baosheng Media Group | National CineMedia vs. Glory Star New | National CineMedia vs. Impact Fusion International |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |