Correlation Between Asure Software and Acm Research

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Can any of the company-specific risk be diversified away by investing in both Asure Software and Acm Research 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 Acm Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asure Software and Acm Research, you can compare the effects of market volatilities on Asure Software and Acm Research 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 Acm Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and Acm Research.

Diversification Opportunities for Asure Software and Acm Research

AsureAcmDiversified AwayAsureAcmDiversified Away100%
-0.2
  Correlation Coefficient

Good diversification

The 3 months correlation between Asure and Acm is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and Acm Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acm Research 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 Acm Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acm Research has no effect on the direction of Asure Software i.e., Asure Software and Acm Research go up and down completely randomly.

Pair Corralation between Asure Software and Acm Research

Given the investment horizon of 90 days Asure Software is expected to generate 0.99 times more return on investment than Acm Research. However, Asure Software is 1.01 times less risky than Acm Research. It trades about 0.14 of its potential returns per unit of risk. Acm Research is currently generating about -0.12 per unit of risk. If you would invest  858.00  in Asure Software on October 13, 2024 and sell it today you would earn a total of  267.00  from holding Asure Software or generate 31.12% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Asure Software  vs.  Acm Research

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -100102030
JavaScript chart by amCharts 3.21.15ASUR ACMR
       Timeline  
Asure Software 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Asure Software are ranked lower than 10 (%) 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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan7.588.599.51010.51111.5
Acm Research 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Acm Research has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's primary indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan141516171819202122

Asure Software and Acm Research Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.79-8.08-5.37-2.660.02.85.698.5811.4714.37 0.0200.0250.030
JavaScript chart by amCharts 3.21.15ASUR ACMR
       Returns  

Pair Trading with Asure Software and Acm Research

The main advantage of trading using opposite Asure Software and Acm Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, Acm Research 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 Acm Research will offset losses from the drop in Acm Research's long position.
The idea behind Asure Software and Acm Research 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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