Correlation Between Asure Software and Kite Realty

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

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

Diversification Opportunities for Asure Software and Kite Realty

0.4

Correlation Coefficient

Asure Software  Kite Realty

Very weak diversification

The 3 months correlation between Asure and Kite is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and Kite Realty Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kite Realty Group 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 Kite Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kite Realty Group has no effect on the direction of Asure Software i.e., Asure Software and Kite Realty go up and down completely randomly.

Pair Corralation between Asure Software and Kite Realty

Given the investment horizon of 90 days Asure Software is expected to generate 3.1 times more return on investment than Kite Realty. However, Asure Software is 3.1 times more volatile than Kite Realty Group. It trades about 0.04 of its potential returns per unit of risk. Kite Realty Group is currently generating about 0.03 per unit of risk. If you would invest  870.00  in Asure Software on September 12, 2024 and sell it today you would earn a total of  43.00  from holding Asure Software or generate 4.94% return on investment over 90 days.

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

Asure Software  vs.  Kite Realty Group

Asure Software

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Asure Software are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Asure Software may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Kite Realty Group

Risk-Adjusted Performance

1 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kite Realty Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Kite Realty is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Asure Software and Kite Realty

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

The idea behind Asure Software and Kite Realty Group 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.

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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.