Correlation Between ASURE SOFTWARE and Global Ship
Can any of the company-specific risk be diversified away by investing in both ASURE SOFTWARE and Global Ship 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 ASURE SOFTWARE and Global Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASURE SOFTWARE and Global Ship Lease, you can compare the effects of market volatilities on ASURE SOFTWARE and Global Ship 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 ASURE SOFTWARE with a short position of Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASURE SOFTWARE and Global Ship.
Diversification Opportunities for ASURE SOFTWARE and Global Ship
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASURE and Global is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding ASURE SOFTWARE and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease and ASURE SOFTWARE 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 ASURE SOFTWARE are associated (or correlated) with Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of ASURE SOFTWARE i.e., ASURE SOFTWARE and Global Ship go up and down completely randomly.
Pair Corralation between ASURE SOFTWARE and Global Ship
Assuming the 90 days trading horizon ASURE SOFTWARE is expected to generate 1.83 times more return on investment than Global Ship. However, ASURE SOFTWARE is 1.83 times more volatile than Global Ship Lease. It trades about 0.03 of its potential returns per unit of risk. Global Ship Lease is currently generating about 0.05 per unit of risk. If you would invest 740.00 in ASURE SOFTWARE on September 2, 2024 and sell it today you would earn a total of 180.00 from holding ASURE SOFTWARE or generate 24.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASURE SOFTWARE vs. Global Ship Lease
Performance |
| Timeline |
| ASURE SOFTWARE |
| Global Ship Lease |
ASURE SOFTWARE and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASURE SOFTWARE and Global Ship
The main advantage of trading using opposite ASURE SOFTWARE and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASURE SOFTWARE position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship's long position.| ASURE SOFTWARE vs. Singapore Telecommunications Limited | ASURE SOFTWARE vs. Wyndham Hotels Resorts | ASURE SOFTWARE vs. SK TELECOM TDADR | ASURE SOFTWARE vs. Meli Hotels International |
| Global Ship vs. Clarkson PLC | Global Ship vs. Wilh Wilhelmsen Holding | Global Ship vs. Superior Plus Corp | Global Ship vs. NMI 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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