Correlation Between Green Shift and Asure Software

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

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

Diversification Opportunities for Green Shift and Asure Software

0.2

Correlation Coefficient

Green Shift  Asure Software

Modest diversification

The 3 months correlation between Green and Asure is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Green Shift Commodities and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software and Green Shift 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 Green Shift Commodities 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 Green Shift i.e., Green Shift and Asure Software go up and down completely randomly.

Pair Corralation between Green Shift and Asure Software

Assuming the 90 days horizon Green Shift Commodities is expected to generate 3.32 times more return on investment than Asure Software. However, Green Shift is 3.32 times more volatile than Asure Software. It trades about 0.02 of its potential returns per unit of risk. Asure Software is currently generating about 0.04 per unit of risk. If you would invest  2.82  in Green Shift Commodities on December 28, 2024 and sell it today you would lose (0.70) from holding Green Shift Commodities or give up 24.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Green Shift Commodities  vs.  Asure Software

Green Shift Commodities

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Green Shift Commodities are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak primary indicators, Green Shift may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Asure Software

Risk-Adjusted Performance

Weak

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 weak basic indicators, Asure Software may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Green Shift and Asure Software

The main advantage of trading using opposite Green Shift and Asure Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Shift 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 Green Shift Commodities 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.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.