Correlation Between ASURE SOFTWARE and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both ASURE SOFTWARE and Jacquet Metal 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 Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASURE SOFTWARE and Jacquet Metal Service, you can compare the effects of market volatilities on ASURE SOFTWARE and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASURE SOFTWARE and Jacquet Metal.
Diversification Opportunities for ASURE SOFTWARE and Jacquet Metal
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ASURE and Jacquet is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding ASURE SOFTWARE and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of ASURE SOFTWARE i.e., ASURE SOFTWARE and Jacquet Metal go up and down completely randomly.
Pair Corralation between ASURE SOFTWARE and Jacquet Metal
Assuming the 90 days trading horizon ASURE SOFTWARE is expected to under-perform the Jacquet Metal. But the stock apears to be less risky and, when comparing its historical volatility, ASURE SOFTWARE is 1.04 times less risky than Jacquet Metal. The stock trades about -0.15 of its potential returns per unit of risk. The Jacquet Metal Service is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,548 in Jacquet Metal Service on September 28, 2024 and sell it today you would earn a total of 152.00 from holding Jacquet Metal Service or generate 9.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASURE SOFTWARE vs. Jacquet Metal Service
Performance |
| Timeline |
| ASURE SOFTWARE |
| Jacquet Metal Service |
ASURE SOFTWARE and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASURE SOFTWARE and Jacquet Metal
The main advantage of trading using opposite ASURE SOFTWARE and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASURE SOFTWARE position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.The idea behind ASURE SOFTWARE and Jacquet Metal Service pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Jacquet Metal vs. Nucor | Jacquet Metal vs. ArcelorMittal SA | Jacquet Metal vs. ArcelorMittal | Jacquet Metal vs. Steel Dynamics |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| 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 | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |