Correlation Between Asure Software and Bank of America
Can any of the company-specific risk be diversified away by investing in both Asure Software and Bank of America 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 Bank of America into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asure Software and Bank of America, you can compare the effects of market volatilities on Asure Software and Bank of America 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 Bank of America. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and Bank of America.
Diversification Opportunities for Asure Software and Bank of America
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Asure and Bank is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and Bank of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of America 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 Bank of America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of America has no effect on the direction of Asure Software i.e., Asure Software and Bank of America go up and down completely randomly.
Pair Corralation between Asure Software and Bank of America
Given the investment horizon of 90 days Asure Software is expected to generate 5.28 times more return on investment than Bank of America. However, Asure Software is 5.28 times more volatile than Bank of America. It trades about 0.18 of its potential returns per unit of risk. Bank of America is currently generating about -0.03 per unit of risk. If you would invest 831.00 in Asure Software on September 5, 2024 and sell it today you would earn a total of 111.00 from holding Asure Software or generate 13.36% 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. Bank of America
Performance |
Timeline |
Asure Software |
Bank of America |
Asure Software and Bank of America Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asure Software and Bank of America
The main advantage of trading using opposite Asure Software and Bank of America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, Bank of America 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 Bank of America will offset losses from the drop in Bank of America's long position.Asure Software vs. Alkami Technology | Asure Software vs. Blackbaud | Asure Software vs. Enfusion | Asure Software vs. Clearwater Analytics Holdings |
Bank of America vs. Wells Fargo | Bank of America vs. Bank of America | Bank of America vs. Bank of America | Bank of America vs. Wells Fargo |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |