Correlation Between Easy Technologies and Asure Software

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

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

Diversification Opportunities for Easy Technologies and Asure Software

0.0

Correlation Coefficient

Easy Technologies  Asure Software

Pay attention - limited upside

The 3 months correlation between Easy and Asure is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Easy Technologies and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software and Easy Technologies 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 Easy Technologies 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 Easy Technologies i.e., Easy Technologies and Asure Software go up and down completely randomly.

Pair Corralation between Easy Technologies and Asure Software

If you would invest  902.00  in Asure Software on October 10, 2024 and sell it today you would earn a total of  231.00  from holding Asure Software or generate 25.61% return on investment over 90 days.

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

Easy Technologies  vs.  Asure Software

Easy Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Easy Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Easy Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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.

Pair Trading with Easy Technologies and Asure Software

The main advantage of trading using opposite Easy Technologies and Asure Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easy Technologies 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 Easy Technologies 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.