Correlation Between ASURE SOFTWARE and TROPHY GAMES

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

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

Diversification Opportunities for ASURE SOFTWARE and TROPHY GAMES

-0.35

Correlation Coefficient

ASURE SOFTWARE  TROPHY GAMES

Very good diversification

The 3 months correlation between ASURE and TROPHY is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding ASURE SOFTWARE and TROPHY GAMES DEV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TROPHY GAMES DEV 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 TROPHY GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TROPHY GAMES DEV has no effect on the direction of ASURE SOFTWARE i.e., ASURE SOFTWARE and TROPHY GAMES go up and down completely randomly.

Pair Corralation between ASURE SOFTWARE and TROPHY GAMES

Assuming the 90 days trading horizon ASURE SOFTWARE is expected to generate 3.79 times less return on investment than TROPHY GAMES. But when comparing it to its historical volatility, ASURE SOFTWARE is 1.49 times less risky than TROPHY GAMES. It trades about 0.02 of its potential returns per unit of risk. TROPHY GAMES DEV is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  50.00  in TROPHY GAMES DEV on September 20, 2024 and sell it today you would earn a total of  36.00  from holding TROPHY GAMES DEV or generate 72.0% return on investment over 90 days.

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

ASURE SOFTWARE  vs.  TROPHY GAMES DEV

ASURE SOFTWARE

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ASURE SOFTWARE are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, ASURE SOFTWARE may actually be approaching a critical reversion point that can send shares even higher in January 2025.

TROPHY GAMES DEV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TROPHY GAMES DEV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with ASURE SOFTWARE and TROPHY GAMES

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

The idea behind ASURE SOFTWARE and TROPHY GAMES DEV 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.