Correlation Between MASSIN and Asure Software

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

By analyzing existing cross correlation between MASSIN 3067 01 APR 52 and Asure Software, you can compare the effects of market volatilities on MASSIN 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 MASSIN with a short position of Asure Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of MASSIN and Asure Software.

Diversification Opportunities for MASSIN and Asure Software

-0.09

Correlation Coefficient

MASSIN  Asure Software

Good diversification

The 3 months correlation between MASSIN and Asure is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding MASSIN 3067 01 APR 52 and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software and MASSIN 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 MASSIN 3067 01 APR 52 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 MASSIN i.e., MASSIN and Asure Software go up and down completely randomly.

Pair Corralation between MASSIN and Asure Software

Assuming the 90 days trading horizon MASSIN 3067 01 APR 52 is expected to generate 1.04 times more return on investment than Asure Software. However, MASSIN is 1.04 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 -0.08 per unit of risk. If you would invest  7,245  in MASSIN 3067 01 APR 52 on September 28, 2024 and sell it today you would earn a total of  14.00  from holding MASSIN 3067 01 APR 52 or generate 0.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	55.0%
Values	Daily Returns

MASSIN 3067 01 APR 52  vs.  Asure Software

MASSIN 3067 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MASSIN 3067 01 APR 52 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, MASSIN is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Asure Software

Risk-Adjusted Performance

3 of 100

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 January 2025.

Pair Trading with MASSIN and Asure Software

The main advantage of trading using opposite MASSIN and Asure Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MASSIN 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 MASSIN 3067 01 APR 52 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 Transaction History module to view history of all your transactions and understand their impact on performance.