Correlation Between NTG Nordic and ASURE SOFTWARE
Can any of the company-specific risk be diversified away by investing in both NTG Nordic 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 NTG Nordic and ASURE SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NTG Nordic Transport and ASURE SOFTWARE, you can compare the effects of market volatilities on NTG Nordic 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 NTG Nordic with a short position of ASURE SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and ASURE SOFTWARE.
Diversification Opportunities for NTG Nordic and ASURE SOFTWARE
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NTG and ASURE is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and ASURE SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASURE SOFTWARE and NTG Nordic 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 NTG Nordic Transport 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 NTG Nordic i.e., NTG Nordic and ASURE SOFTWARE go up and down completely randomly.
Pair Corralation between NTG Nordic and ASURE SOFTWARE
Assuming the 90 days trading horizon NTG Nordic Transport is expected to under-perform the ASURE SOFTWARE. But the stock apears to be less risky and, when comparing its historical volatility, NTG Nordic Transport is 1.71 times less risky than ASURE SOFTWARE. The stock trades about -0.16 of its potential returns per unit of risk. The ASURE SOFTWARE is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 910.00 in ASURE SOFTWARE on October 17, 2024 and sell it today you would earn a total of 200.00 from holding ASURE SOFTWARE or generate 21.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NTG Nordic Transport vs. ASURE SOFTWARE
Performance |
| Timeline |
| NTG Nordic Transport |
| ASURE SOFTWARE |
NTG Nordic and ASURE SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and ASURE SOFTWARE
The main advantage of trading using opposite NTG Nordic and ASURE SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic 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.| NTG Nordic vs. Choice Hotels International | NTG Nordic vs. DALATA HOTEL | NTG Nordic vs. CITY OFFICE REIT | NTG Nordic vs. Hyatt Hotels |
| ASURE SOFTWARE vs. SWISS WATER DECAFFCOFFEE | ASURE SOFTWARE vs. CSSC Offshore Marine | ASURE SOFTWARE vs. SOGECLAIR SA INH | ASURE SOFTWARE vs. CanSino Biologics |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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