Correlation Between Asure Software and Entegris

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

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

Diversification Opportunities for Asure Software and Entegris

-0.16

Correlation Coefficient

Asure Software  Entegris

Good diversification

The 3 months correlation between Asure and Entegris is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris 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 Entegris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entegris has no effect on the direction of Asure Software i.e., Asure Software and Entegris go up and down completely randomly.

Pair Corralation between Asure Software and Entegris

Given the investment horizon of 90 days Asure Software is expected to generate 1.27 times more return on investment than Entegris. However, Asure Software is 1.27 times more volatile than Entegris. It trades about 0.17 of its potential returns per unit of risk. Entegris is currently generating about -0.03 per unit of risk. If you would invest  931.00  in Asure Software on October 11, 2024 and sell it today you would earn a total of  202.00  from holding Asure Software or generate 21.7% 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.  Entegris

Asure Software

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Asure Software are ranked lower than 11 (%) 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.

Entegris

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Entegris has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Asure Software and Entegris

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

The idea behind Asure Software and Entegris 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..