Correlation Between ASURE SOFTWARE and Keck Seng
Can any of the company-specific risk be diversified away by investing in both ASURE SOFTWARE and Keck Seng 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 Keck Seng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASURE SOFTWARE and Keck Seng Investments, you can compare the effects of market volatilities on ASURE SOFTWARE and Keck Seng 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 Keck Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASURE SOFTWARE and Keck Seng.
Diversification Opportunities for ASURE SOFTWARE and Keck Seng
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ASURE and Keck is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding ASURE SOFTWARE and Keck Seng Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keck Seng Investments 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 Keck Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keck Seng Investments has no effect on the direction of ASURE SOFTWARE i.e., ASURE SOFTWARE and Keck Seng go up and down completely randomly.
Pair Corralation between ASURE SOFTWARE and Keck Seng
Assuming the 90 days trading horizon ASURE SOFTWARE is expected to generate 0.94 times more return on investment than Keck Seng. However, ASURE SOFTWARE is 1.07 times less risky than Keck Seng. It trades about 0.3 of its potential returns per unit of risk. Keck Seng Investments is currently generating about 0.02 per unit of risk. If you would invest 925.00 in ASURE SOFTWARE on November 6, 2024 and sell it today you would earn a total of 215.00 from holding ASURE SOFTWARE or generate 23.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASURE SOFTWARE vs. Keck Seng Investments
Performance |
| Timeline |
| ASURE SOFTWARE |
| Keck Seng Investments |
ASURE SOFTWARE and Keck Seng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASURE SOFTWARE and Keck Seng
The main advantage of trading using opposite ASURE SOFTWARE and Keck Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASURE SOFTWARE position performs unexpectedly, Keck Seng 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 Keck Seng will offset losses from the drop in Keck Seng's long position.| ASURE SOFTWARE vs. AEON STORES | ASURE SOFTWARE vs. American Airlines Group | ASURE SOFTWARE vs. Nok Airlines PCL | ASURE SOFTWARE vs. H2O Retailing |
| Keck Seng vs. FIREWEED METALS P | Keck Seng vs. MCEWEN MINING INC | Keck Seng vs. Cleanaway Waste Management | Keck Seng vs. ADRIATIC METALS LS 013355 |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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