Correlation Between ASURE SOFTWARE and PEH WERTPAPIER
Can any of the company-specific risk be diversified away by investing in both ASURE SOFTWARE and PEH WERTPAPIER 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 PEH WERTPAPIER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASURE SOFTWARE and PEH WERTPAPIER, you can compare the effects of market volatilities on ASURE SOFTWARE and PEH WERTPAPIER 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 PEH WERTPAPIER. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASURE SOFTWARE and PEH WERTPAPIER.
Diversification Opportunities for ASURE SOFTWARE and PEH WERTPAPIER
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ASURE and PEH is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding ASURE SOFTWARE and PEH WERTPAPIER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEH WERTPAPIER 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 PEH WERTPAPIER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEH WERTPAPIER has no effect on the direction of ASURE SOFTWARE i.e., ASURE SOFTWARE and PEH WERTPAPIER go up and down completely randomly.
Pair Corralation between ASURE SOFTWARE and PEH WERTPAPIER
Assuming the 90 days trading horizon ASURE SOFTWARE is expected to under-perform the PEH WERTPAPIER. In addition to that, ASURE SOFTWARE is 1.84 times more volatile than PEH WERTPAPIER. It trades about -0.01 of its total potential returns per unit of risk. PEH WERTPAPIER is currently generating about 0.06 per unit of volatility. If you would invest 2,240 in PEH WERTPAPIER on September 13, 2024 and sell it today you would earn a total of 40.00 from holding PEH WERTPAPIER or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
ASURE SOFTWARE vs. PEH WERTPAPIER
Performance |
| Timeline |
| ASURE SOFTWARE |
| PEH WERTPAPIER |
ASURE SOFTWARE and PEH WERTPAPIER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASURE SOFTWARE and PEH WERTPAPIER
The main advantage of trading using opposite ASURE SOFTWARE and PEH WERTPAPIER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASURE SOFTWARE position performs unexpectedly, PEH WERTPAPIER 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 PEH WERTPAPIER will offset losses from the drop in PEH WERTPAPIER's long position.| ASURE SOFTWARE vs. Apple Inc | ASURE SOFTWARE vs. Apple Inc | ASURE SOFTWARE vs. Apple Inc | ASURE SOFTWARE vs. Apple Inc |
| PEH WERTPAPIER vs. SHIP HEALTHCARE HLDGINC | PEH WERTPAPIER vs. Ross Stores | PEH WERTPAPIER vs. Fast Retailing Co | PEH WERTPAPIER vs. FEMALE HEALTH |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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