Correlation Between ASURE SOFTWARE and ESSILORLUXOTTICA

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

By analyzing existing cross correlation between ASURE SOFTWARE and ESSILORLUXOTTICA 12ON, you can compare the effects of market volatilities on ASURE SOFTWARE and ESSILORLUXOTTICA 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 ESSILORLUXOTTICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASURE SOFTWARE and ESSILORLUXOTTICA.

Diversification Opportunities for ASURE SOFTWARE and ESSILORLUXOTTICA

-0.08

Correlation Coefficient

ASURE SOFTWARE  ESSILORLUXOTTICA

Good diversification

The 3 months correlation between ASURE and ESSILORLUXOTTICA is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding ASURE SOFTWARE and ESSILORLUXOTTICA 12ON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESSILORLUXOTTICA 12ON 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 ESSILORLUXOTTICA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESSILORLUXOTTICA 12ON has no effect on the direction of ASURE SOFTWARE i.e., ASURE SOFTWARE and ESSILORLUXOTTICA go up and down completely randomly.

Pair Corralation between ASURE SOFTWARE and ESSILORLUXOTTICA

Assuming the 90 days trading horizon ASURE SOFTWARE is expected to generate 0.97 times more return on investment than ESSILORLUXOTTICA. However, ASURE SOFTWARE is 1.03 times less risky than ESSILORLUXOTTICA. It trades about 0.03 of its potential returns per unit of risk. ESSILORLUXOTTICA 12ON is currently generating about 0.0 per unit of risk. If you would invest  850.00  in ASURE SOFTWARE on April 25, 2025 and sell it today you would earn a total of  20.00  from holding ASURE SOFTWARE or generate 2.35% 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.  ESSILORLUXOTTICA 12ON

ASURE SOFTWARE

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ASURE SOFTWARE are ranked lower than 2 (%) 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 newest stock price tumult, may contribute to shorter-term losses for the shareholders.

ESSILORLUXOTTICA 12ON

Risk-Adjusted Performance

Very Weak

Over the last 90 days ESSILORLUXOTTICA 12ON has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, ESSILORLUXOTTICA is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ASURE SOFTWARE and ESSILORLUXOTTICA

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

The idea behind ASURE SOFTWARE and ESSILORLUXOTTICA 12ON 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.