Correlation Between Asure Software and Knife River
Can any of the company-specific risk be diversified away by investing in both Asure Software and Knife River 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 Knife River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asure Software and Knife River, you can compare the effects of market volatilities on Asure Software and Knife River 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 Knife River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and Knife River.
Diversification Opportunities for Asure Software and Knife River
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asure and Knife is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and Knife River in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knife River 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 Knife River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knife River has no effect on the direction of Asure Software i.e., Asure Software and Knife River go up and down completely randomly.
Pair Corralation between Asure Software and Knife River
Given the investment horizon of 90 days Asure Software is expected to generate 7.25 times less return on investment than Knife River. In addition to that, Asure Software is 1.29 times more volatile than Knife River. It trades about 0.01 of its total potential returns per unit of risk. Knife River is currently generating about 0.11 per unit of volatility. If you would invest 8,899 in Knife River on September 25, 2024 and sell it today you would earn a total of 1,364 from holding Knife River or generate 15.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Asure Software vs. Knife River
Performance |
Timeline |
Asure Software |
Knife River |
Asure Software and Knife River Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asure Software and Knife River
The main advantage of trading using opposite Asure Software and Knife River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, Knife River 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 Knife River will offset losses from the drop in Knife River's long position.Asure Software vs. Dubber Limited | Asure Software vs. Advanced Health Intelligence | Asure Software vs. Danavation Technologies Corp | Asure Software vs. BASE Inc |
Knife River vs. BioNTech SE | Knife River vs. Afya | Knife River vs. Asure Software | Knife River vs. 51Talk Online Education |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |