Correlation Between Amacore and Absolute Software

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

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

Diversification Opportunities for Amacore and Absolute Software

0.0

Correlation Coefficient

Amacore  Absolute Software

Pay attention - limited upside

The 3 months correlation between Amacore and Absolute is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Amacore Group and Absolute Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absolute Software and Amacore 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 The Amacore Group are associated (or correlated) with Absolute Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absolute Software has no effect on the direction of Amacore i.e., Amacore and Absolute Software go up and down completely randomly.

Pair Corralation between Amacore and Absolute Software

If you would invest  1,149  in Absolute Software on January 25, 2024 and sell it today you would earn a total of  0.00  from holding Absolute Software or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.86%
Values	Daily Returns

The Amacore Group  vs.  Absolute Software

Amacore Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Amacore Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Amacore is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Absolute Software

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Absolute Software has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Absolute Software is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Amacore and Absolute Software

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

The idea behind The Amacore Group and Absolute 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.