Correlation Between ASURE SOFTWARE and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both ASURE SOFTWARE and Amkor Technology 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 Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASURE SOFTWARE and Amkor Technology, you can compare the effects of market volatilities on ASURE SOFTWARE and Amkor Technology 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 Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASURE SOFTWARE and Amkor Technology.
Diversification Opportunities for ASURE SOFTWARE and Amkor Technology
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASURE and Amkor is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding ASURE SOFTWARE and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology 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 Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of ASURE SOFTWARE i.e., ASURE SOFTWARE and Amkor Technology go up and down completely randomly.
Pair Corralation between ASURE SOFTWARE and Amkor Technology
Assuming the 90 days trading horizon ASURE SOFTWARE is expected to generate 1.92 times more return on investment than Amkor Technology. However, ASURE SOFTWARE is 1.92 times more volatile than Amkor Technology. It trades about 0.06 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.01 per unit of risk. If you would invest 880.00 in ASURE SOFTWARE on August 30, 2024 and sell it today you would earn a total of 30.00 from holding ASURE SOFTWARE or generate 3.41% 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. Amkor Technology
Performance |
| Timeline |
| ASURE SOFTWARE |
| Amkor Technology |
ASURE SOFTWARE and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASURE SOFTWARE and Amkor Technology
The main advantage of trading using opposite ASURE SOFTWARE and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASURE SOFTWARE position performs unexpectedly, Amkor Technology 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.| ASURE SOFTWARE vs. Apple Inc | ASURE SOFTWARE vs. Apple Inc | ASURE SOFTWARE vs. Superior Plus Corp | ASURE SOFTWARE vs. SIVERS SEMICONDUCTORS AB |
| Amkor Technology vs. NVIDIA | Amkor Technology vs. Texas Instruments Incorporated | Amkor Technology vs. Advanced Micro Devices | Amkor Technology vs. Advanced Micro Devices |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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