Correlation Between Asure Software and Destiny Media

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Can any of the company-specific risk be diversified away by investing in both Asure Software and Destiny Media 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 Destiny Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asure Software and Destiny Media Technologies, you can compare the effects of market volatilities on Asure Software and Destiny Media 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 Destiny Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and Destiny Media.

Diversification Opportunities for Asure Software and Destiny Media

0.2
  Correlation Coefficient

Modest diversification

The 3 months correlation between Asure and Destiny is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and Destiny Media Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Destiny Media Techno 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 Destiny Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Destiny Media Techno has no effect on the direction of Asure Software i.e., Asure Software and Destiny Media go up and down completely randomly.

Pair Corralation between Asure Software and Destiny Media

Given the investment horizon of 90 days Asure Software is expected to under-perform the Destiny Media. But the stock apears to be less risky and, when comparing its historical volatility, Asure Software is 1.37 times less risky than Destiny Media. The stock trades about -0.23 of its potential returns per unit of risk. The Destiny Media Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  100.00  in Destiny Media Technologies on December 29, 2023 and sell it today you would earn a total of  5.00  from holding Destiny Media Technologies or generate 5.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy95.65%
ValuesDaily Returns

Asure Software  vs.  Destiny Media Technologies

 Performance 
       Timeline  
Asure Software 

Risk-Adjusted Performance

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Low
 
High
Very Weak
Over the last 90 days Asure Software has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
Destiny Media Techno 

Risk-Adjusted Performance

1 of 100

 
Low
 
High
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Destiny Media Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Destiny Media is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Asure Software and Destiny Media Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Asure Software and Destiny Media

The main advantage of trading using opposite Asure Software and Destiny Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, Destiny Media 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 Destiny Media will offset losses from the drop in Destiny Media's long position.
The idea behind Asure Software and Destiny Media Technologies 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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