Correlation Between Asure Software and CoreCard Corp

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

By analyzing existing cross correlation between Asure Software and CoreCard Corp, you can compare the effects of market volatilities on Asure Software and CoreCard Corp 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 CoreCard Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and CoreCard Corp.

Diversification Opportunities for Asure Software and CoreCard Corp

0.88

Correlation Coefficient

Asure Software  CoreCard Corp

Very poor diversification

The 3 months correlation between Asure and CoreCard is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and CoreCard Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoreCard Corp 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 CoreCard Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoreCard Corp has no effect on the direction of Asure Software i.e., Asure Software and CoreCard Corp go up and down completely randomly.

Pair Corralation between Asure Software and CoreCard Corp

Given the investment horizon of 90 days Asure Software is expected to generate 0.95 times more return on investment than CoreCard Corp. However, Asure Software is 1.05 times less risky than CoreCard Corp. It trades about -0.05 of its potential returns per unit of risk. CoreCard Corp is currently generating about -0.07 per unit of risk. If you would invest  1,165  in Asure Software on February 3, 2025 and sell it today you would lose (150.00) from holding Asure Software or give up 12.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Asure Software  vs.  CoreCard Corp

Asure Software

Risk-Adjusted Performance

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 latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

CoreCard Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days CoreCard Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in June 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Asure Software and CoreCard Corp

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

The idea behind Asure Software and CoreCard Corp 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..