Correlation Between SIVERS SEMICONDUCTORS and ASURE SOFTWARE

Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and ASURE SOFTWARE 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 SIVERS SEMICONDUCTORS and ASURE SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SIVERS SEMICONDUCTORS AB and ASURE SOFTWARE, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and ASURE SOFTWARE 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 SIVERS SEMICONDUCTORS with a short position of ASURE SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and ASURE SOFTWARE.

Diversification Opportunities for SIVERS SEMICONDUCTORS and ASURE SOFTWARE

-0.42

Correlation Coefficient

SIVERS SEMICONDUCTORS  ASURE SOFTWARE

Very good diversification

The 3 months correlation between SIVERS and ASURE is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and ASURE SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASURE SOFTWARE and SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS AB are associated (or correlated) with ASURE SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASURE SOFTWARE has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and ASURE SOFTWARE go up and down completely randomly.

Pair Corralation between SIVERS SEMICONDUCTORS and ASURE SOFTWARE

Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to generate 2.0 times more return on investment than ASURE SOFTWARE. However, SIVERS SEMICONDUCTORS is 2.0 times more volatile than ASURE SOFTWARE. It trades about 0.1 of its potential returns per unit of risk. ASURE SOFTWARE is currently generating about 0.02 per unit of risk. If you would invest  26.00  in SIVERS SEMICONDUCTORS AB on December 30, 2024 and sell it today you would earn a total of  9.00  from holding SIVERS SEMICONDUCTORS AB or generate 34.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

SIVERS SEMICONDUCTORS AB  vs.  ASURE SOFTWARE

SIVERS SEMICONDUCTORS

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SIVERS SEMICONDUCTORS AB are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SIVERS SEMICONDUCTORS reported solid returns over the last few months and may actually be approaching a breakup point.

ASURE SOFTWARE

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ASURE SOFTWARE are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, ASURE SOFTWARE is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SIVERS SEMICONDUCTORS and ASURE SOFTWARE

The main advantage of trading using opposite SIVERS SEMICONDUCTORS and ASURE SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, ASURE SOFTWARE 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 ASURE SOFTWARE will offset losses from the drop in ASURE SOFTWARE's long position.

The idea behind SIVERS SEMICONDUCTORS AB and ASURE SOFTWARE 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.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.