Correlation Between Asure Software and COSCIENS Biopharma

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

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

Diversification Opportunities for Asure Software and COSCIENS Biopharma

-0.28

Correlation Coefficient

Asure Software  COSCIENS Biopharma

Very good diversification

The 3 months correlation between Asure and COSCIENS is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and COSCIENS Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSCIENS Biopharma 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 COSCIENS Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSCIENS Biopharma has no effect on the direction of Asure Software i.e., Asure Software and COSCIENS Biopharma go up and down completely randomly.

Pair Corralation between Asure Software and COSCIENS Biopharma

Given the investment horizon of 90 days Asure Software is expected to generate 0.56 times more return on investment than COSCIENS Biopharma. However, Asure Software is 1.79 times less risky than COSCIENS Biopharma. It trades about 0.04 of its potential returns per unit of risk. COSCIENS Biopharma is currently generating about -0.06 per unit of risk. If you would invest  780.00  in Asure Software on September 21, 2024 and sell it today you would earn a total of  134.00  from holding Asure Software or generate 17.18% return on investment over 90 days.

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

Asure Software  vs.  COSCIENS Biopharma

Asure Software

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asure Software has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Asure Software is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

COSCIENS Biopharma

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days COSCIENS Biopharma has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Asure Software and COSCIENS Biopharma

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

The idea behind Asure Software and COSCIENS Biopharma 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.