Correlation Between Pinduoduo and Asure Software
Can any of the company-specific risk be diversified away by investing in both Pinduoduo and Asure 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 Pinduoduo and Asure Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinduoduo and Asure Software, you can compare the effects of market volatilities on Pinduoduo and Asure 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 Pinduoduo with a short position of Asure Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinduoduo and Asure Software.
Diversification Opportunities for Pinduoduo and Asure Software
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pinduoduo and Asure is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Pinduoduo and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software and Pinduoduo 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 Pinduoduo are associated (or correlated) with Asure Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asure Software has no effect on the direction of Pinduoduo i.e., Pinduoduo and Asure Software go up and down completely randomly.
Pair Corralation between Pinduoduo and Asure Software
Considering the 90-day investment horizon Pinduoduo is expected to generate 1.33 times more return on investment than Asure Software. However, Pinduoduo is 1.33 times more volatile than Asure Software. It trades about 0.12 of its potential returns per unit of risk. Asure Software is currently generating about -0.13 per unit of risk. If you would invest 12,010 in Pinduoduo on January 26, 2024 and sell it today you would earn a total of 745.00 from holding Pinduoduo or generate 6.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Pinduoduo vs. Asure Software
Performance |
Timeline |
Pinduoduo |
Asure Software |
Pinduoduo and Asure Software Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pinduoduo and Asure Software
The main advantage of trading using opposite Pinduoduo and Asure Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinduoduo position performs unexpectedly, Asure 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 Asure Software will offset losses from the drop in Asure Software's long position.Pinduoduo vs. Sea | Pinduoduo vs. Vipshop Holdings Limited | Pinduoduo vs. Amazon Inc | Pinduoduo vs. JD Inc Adr |
Asure Software vs. American Software | Asure Software vs. Alkami Technology | Asure Software vs. Blackbaud | Asure Software vs. Enfusion |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
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 | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Global Correlations Find global opportunities by holding instruments from different markets |