Correlation Between ASURE SOFTWARE and Sinopec Shanghai
Can any of the company-specific risk be diversified away by investing in both ASURE SOFTWARE and Sinopec Shanghai 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 Sinopec Shanghai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASURE SOFTWARE and Sinopec Shanghai Petrochemical, you can compare the effects of market volatilities on ASURE SOFTWARE and Sinopec Shanghai 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 Sinopec Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASURE SOFTWARE and Sinopec Shanghai.
Diversification Opportunities for ASURE SOFTWARE and Sinopec Shanghai
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ASURE and Sinopec is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding ASURE SOFTWARE and Sinopec Shanghai Petrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinopec Shanghai Pet 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 Sinopec Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinopec Shanghai Pet has no effect on the direction of ASURE SOFTWARE i.e., ASURE SOFTWARE and Sinopec Shanghai go up and down completely randomly.
Pair Corralation between ASURE SOFTWARE and Sinopec Shanghai
Assuming the 90 days trading horizon ASURE SOFTWARE is expected to generate 0.67 times more return on investment than Sinopec Shanghai. However, ASURE SOFTWARE is 1.49 times less risky than Sinopec Shanghai. It trades about 0.1 of its potential returns per unit of risk. Sinopec Shanghai Petrochemical is currently generating about -0.01 per unit of risk. If you would invest 810.00 in ASURE SOFTWARE on August 29, 2024 and sell it today you would earn a total of 110.00 from holding ASURE SOFTWARE or generate 13.58% 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. Sinopec Shanghai Petrochemical
Performance |
| Timeline |
| ASURE SOFTWARE |
| Sinopec Shanghai Pet |
ASURE SOFTWARE and Sinopec Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASURE SOFTWARE and Sinopec Shanghai
The main advantage of trading using opposite ASURE SOFTWARE and Sinopec Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASURE SOFTWARE position performs unexpectedly, Sinopec Shanghai 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 Sinopec Shanghai will offset losses from the drop in Sinopec Shanghai'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 |
| Sinopec Shanghai vs. Neste Oyj | Sinopec Shanghai vs. Superior Plus Corp | Sinopec Shanghai vs. NMI Holdings | Sinopec Shanghai vs. Origin Agritech |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |