Correlation Between ASURE SOFTWARE and Newmont

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

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

Diversification Opportunities for ASURE SOFTWARE and Newmont

-0.32

Correlation Coefficient

ASURE SOFTWARE  Newmont

Very good diversification

The 3 months correlation between ASURE and Newmont is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding ASURE SOFTWARE and Newmont in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmont 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 Newmont. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmont has no effect on the direction of ASURE SOFTWARE i.e., ASURE SOFTWARE and Newmont go up and down completely randomly.

Pair Corralation between ASURE SOFTWARE and Newmont

Assuming the 90 days trading horizon ASURE SOFTWARE is expected to generate 1.37 times more return on investment than Newmont. However, ASURE SOFTWARE is 1.37 times more volatile than Newmont. It trades about 0.03 of its potential returns per unit of risk. Newmont is currently generating about 0.0 per unit of risk. If you would invest  905.00  in ASURE SOFTWARE on October 21, 2024 and sell it today you would earn a total of  255.00  from holding ASURE SOFTWARE or generate 28.18% 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.  Newmont

ASURE SOFTWARE

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ASURE SOFTWARE are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, ASURE SOFTWARE exhibited solid returns over the last few months and may actually be approaching a breakup point.

Newmont

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with ASURE SOFTWARE and Newmont

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

The idea behind ASURE SOFTWARE and Newmont 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 CEOs Directory module to screen CEOs from public companies around the world.