Correlation Between Asure Software and Caspian Services

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

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

Diversification Opportunities for Asure Software and Caspian Services

0.0

Correlation Coefficient

Asure Software  Caspian Services

Pay attention - limited upside

The 3 months correlation between Asure and Caspian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and Caspian Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caspian Services 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 Caspian Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caspian Services has no effect on the direction of Asure Software i.e., Asure Software and Caspian Services go up and down completely randomly.

Pair Corralation between Asure Software and Caspian Services

If you would invest  912.00  in Asure Software on December 20, 2024 and sell it today you would earn a total of  120.00  from holding Asure Software or generate 13.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

Asure Software  vs.  Caspian Services

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.

Caspian Services

Risk-Adjusted Performance

Very Weak

Over the last 90 days Caspian Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Caspian Services is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Asure Software and Caspian Services

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

The idea behind Asure Software and Caspian Services 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.