diversifiable risk of combining Asure Software and Marfrig Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asure Software and Marfrig Global Foods, you can compare the effects of market volatilities on Asure Software and Marfrig Global 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 Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and Marfrig Global.
Diversification Opportunities for Asure Software and Marfrig Global
Pair Corralation between Asure Software and Marfrig Global
Given the investment horizon of 90 days Asure Software is expected to generate 0.61 times more return on investment than Marfrig Global. However, Asure Software is 1.63 times less risky than Marfrig Global. It trades about 0.39 of its potential returns per unit of risk. Marfrig Global Foods is currently generating about -0.13 per unit of risk. If you would invest 876.00 in Asure Software on November 24, 2023 and sell it today you would earn a total of 140.00 from holding Asure Software or generate 15.98% return on investment over 90 days.
Asure Software vs. Marfrig Global Foods
Asure Software and Marfrig Global Volatility Contrast
Pair Trading with Asure Software and Marfrig GlobalThe main advantage of trading using opposite Asure Software and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asure Software position performs unexpectedly, Marfrig Global 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 Marfrig Global will offset losses from the drop in Marfrig Global's long position. The idea behind Asure Software and Marfrig Global Foods 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.
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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