Correlation Between EAST SIDE and ASURE SOFTWARE

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

By analyzing existing cross correlation between EAST SIDE GAMES and ASURE SOFTWARE, you can compare the effects of market volatilities on EAST SIDE and ASURE SOFTWARE 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 EAST SIDE with a short position of ASURE SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAST SIDE and ASURE SOFTWARE.

Diversification Opportunities for EAST SIDE and ASURE SOFTWARE

0.31

Correlation Coefficient

EAST SIDE  ASURE SOFTWARE

Weak diversification

The 3 months correlation between EAST and ASURE is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding EAST SIDE GAMES and ASURE SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASURE SOFTWARE and EAST SIDE 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 EAST SIDE GAMES are associated (or correlated) with ASURE SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASURE SOFTWARE has no effect on the direction of EAST SIDE i.e., EAST SIDE and ASURE SOFTWARE go up and down completely randomly.

Pair Corralation between EAST SIDE and ASURE SOFTWARE

Assuming the 90 days horizon EAST SIDE GAMES is expected to under-perform the ASURE SOFTWARE. In addition to that, EAST SIDE is 2.08 times more volatile than ASURE SOFTWARE. It trades about -0.02 of its total potential returns per unit of risk. ASURE SOFTWARE is currently generating about 0.02 per unit of volatility. If you would invest  900.00  in ASURE SOFTWARE on December 26, 2024 and sell it today you would earn a total of  0.00  from holding ASURE SOFTWARE or generate 0.0% return on investment over 90 days.

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

EAST SIDE GAMES  vs.  ASURE SOFTWARE

EAST SIDE GAMES

Risk-Adjusted Performance

Very Weak

Over the last 90 days EAST SIDE GAMES has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile 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.

ASURE SOFTWARE

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ASURE SOFTWARE are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, ASURE SOFTWARE is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with EAST SIDE and ASURE SOFTWARE

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

The idea behind EAST SIDE GAMES and ASURE SOFTWARE 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.