Correlation Between ASURE SOFTWARE and Yanzhou Coal
Can any of the company-specific risk be diversified away by investing in both ASURE SOFTWARE and Yanzhou Coal 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 Yanzhou Coal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASURE SOFTWARE and Yanzhou Coal Mining, you can compare the effects of market volatilities on ASURE SOFTWARE and Yanzhou Coal 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 Yanzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASURE SOFTWARE and Yanzhou Coal.
Diversification Opportunities for ASURE SOFTWARE and Yanzhou Coal
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ASURE and Yanzhou is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding ASURE SOFTWARE and Yanzhou Coal Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yanzhou Coal Mining 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 Yanzhou Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yanzhou Coal Mining has no effect on the direction of ASURE SOFTWARE i.e., ASURE SOFTWARE and Yanzhou Coal go up and down completely randomly.
Pair Corralation between ASURE SOFTWARE and Yanzhou Coal
Assuming the 90 days trading horizon ASURE SOFTWARE is expected to generate 1.79 times more return on investment than Yanzhou Coal. However, ASURE SOFTWARE is 1.79 times more volatile than Yanzhou Coal Mining. It trades about 0.31 of its potential returns per unit of risk. Yanzhou Coal Mining is currently generating about -0.37 per unit of risk. If you would invest 910.00 in ASURE SOFTWARE on October 17, 2024 and sell it today you would earn a total of 200.00 from holding ASURE SOFTWARE or generate 21.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
ASURE SOFTWARE vs. Yanzhou Coal Mining
Performance |
| Timeline |
| ASURE SOFTWARE |
| Yanzhou Coal Mining |
ASURE SOFTWARE and Yanzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASURE SOFTWARE and Yanzhou Coal
The main advantage of trading using opposite ASURE SOFTWARE and Yanzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASURE SOFTWARE position performs unexpectedly, Yanzhou Coal 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 Yanzhou Coal will offset losses from the drop in Yanzhou Coal's long position.| ASURE SOFTWARE vs. SWISS WATER DECAFFCOFFEE | ASURE SOFTWARE vs. CSSC Offshore Marine | ASURE SOFTWARE vs. SOGECLAIR SA INH | ASURE SOFTWARE vs. CanSino Biologics |
| Yanzhou Coal vs. Kingdee International Software | Yanzhou Coal vs. Guidewire Software | Yanzhou Coal vs. American Airlines Group | Yanzhou Coal vs. ASURE SOFTWARE |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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