Correlation Between PowerFleet, and Asure Software

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

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

Diversification Opportunities for PowerFleet, and Asure Software

0.08

Correlation Coefficient

PowerFleet,  Asure Software

Significant diversification

The 3 months correlation between PowerFleet, and Asure is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding PowerFleet, and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software and PowerFleet, 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 PowerFleet, 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 PowerFleet, i.e., PowerFleet, and Asure Software go up and down completely randomly.

Pair Corralation between PowerFleet, and Asure Software

Given the investment horizon of 90 days PowerFleet, is expected to under-perform the Asure Software. In addition to that, PowerFleet, is 1.65 times more volatile than Asure Software. It trades about -0.01 of its total potential returns per unit of risk. Asure Software is currently generating about 0.09 per unit of volatility. If you would invest  910.00  in Asure Software on December 21, 2024 and sell it today you would earn a total of  140.00  from holding Asure Software or generate 15.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PowerFleet,  vs.  Asure Software

PowerFleet,

Risk-Adjusted Performance

Very Weak

Over the last 90 days PowerFleet, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, PowerFleet, is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Asure Software

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Asure Software are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Asure Software reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PowerFleet, and Asure Software

The main advantage of trading using opposite PowerFleet, and Asure Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PowerFleet, 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 PowerFleet, 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.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.