Correlation Between ASURE SOFTWARE and Quebecor

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

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

Diversification Opportunities for ASURE SOFTWARE and Quebecor

-0.74

Correlation Coefficient

ASURE SOFTWARE  Quebecor

Pay attention - limited upside

The 3 months correlation between ASURE and Quebecor is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding ASURE SOFTWARE and Quebecor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quebecor 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 Quebecor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quebecor has no effect on the direction of ASURE SOFTWARE i.e., ASURE SOFTWARE and Quebecor go up and down completely randomly.

Pair Corralation between ASURE SOFTWARE and Quebecor

Assuming the 90 days trading horizon ASURE SOFTWARE is expected to generate 2.92 times less return on investment than Quebecor. In addition to that, ASURE SOFTWARE is 3.02 times more volatile than Quebecor. It trades about 0.02 of its total potential returns per unit of risk. Quebecor is currently generating about 0.17 per unit of volatility. If you would invest  2,060  in Quebecor on December 30, 2024 and sell it today you would earn a total of  260.00  from holding Quebecor or generate 12.62% return on investment over 90 days.

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

ASURE SOFTWARE  vs.  Quebecor

ASURE SOFTWARE

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ASURE SOFTWARE are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, ASURE SOFTWARE is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Quebecor

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Quebecor are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Quebecor may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with ASURE SOFTWARE and Quebecor

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

The idea behind ASURE SOFTWARE and Quebecor 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.