Correlation Between Ameritrans Capital and Asure Software

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

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

Diversification Opportunities for Ameritrans Capital and Asure Software

0.0

Correlation Coefficient

Ameritrans Capital  Asure Software

Pay attention - limited upside

The 3 months correlation between Ameritrans and Asure is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ameritrans Capital Corp and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software and Ameritrans Capital 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 Ameritrans Capital Corp 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 Ameritrans Capital i.e., Ameritrans Capital and Asure Software go up and down completely randomly.

Pair Corralation between Ameritrans Capital and Asure Software

If you would invest  15.00  in Ameritrans Capital Corp on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Ameritrans Capital Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.72%
Values	Daily Returns

Ameritrans Capital Corp  vs.  Asure Software

Ameritrans Capital Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ameritrans Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Ameritrans Capital is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Asure Software

Risk-Adjusted Performance

3 of 100

Insignificant

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

Pair Trading with Ameritrans Capital and Asure Software

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

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.