Correlation Between Shutterstock and ASURE SOFTWARE
Can any of the company-specific risk be diversified away by investing in both Shutterstock 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 Shutterstock and ASURE SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shutterstock and ASURE SOFTWARE, you can compare the effects of market volatilities on Shutterstock 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 Shutterstock with a short position of ASURE SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shutterstock and ASURE SOFTWARE.
Diversification Opportunities for Shutterstock and ASURE SOFTWARE
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shutterstock and ASURE is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Shutterstock and ASURE SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASURE SOFTWARE and Shutterstock 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 Shutterstock 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 Shutterstock i.e., Shutterstock and ASURE SOFTWARE go up and down completely randomly.
Pair Corralation between Shutterstock and ASURE SOFTWARE
Assuming the 90 days trading horizon Shutterstock is expected to generate 4.27 times less return on investment than ASURE SOFTWARE. In addition to that, Shutterstock is 2.67 times more volatile than ASURE SOFTWARE. It trades about 0.03 of its total potential returns per unit of risk. ASURE SOFTWARE is currently generating about 0.32 per unit of volatility. If you would invest 900.00 in ASURE SOFTWARE on November 3, 2024 and sell it today you would earn a total of 240.00 from holding ASURE SOFTWARE or generate 26.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shutterstock vs. ASURE SOFTWARE
Performance |
| Timeline |
| Shutterstock |
| ASURE SOFTWARE |
Shutterstock and ASURE SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shutterstock and ASURE SOFTWARE
The main advantage of trading using opposite Shutterstock and ASURE SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shutterstock 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.| Shutterstock vs. Thai Beverage Public | Shutterstock vs. PREMIER FOODS | Shutterstock vs. Kingdee International Software | Shutterstock vs. AECOM TECHNOLOGY |
| ASURE SOFTWARE vs. CARDINAL HEALTH | ASURE SOFTWARE vs. MPH Health Care | ASURE SOFTWARE vs. PSI Software AG | ASURE SOFTWARE vs. Waste Management |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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