Correlation Between Asure Software and Natural Alternatives

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

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

Diversification Opportunities for Asure Software and Natural Alternatives

0.03

Correlation Coefficient

Asure Software  Natural Alternatives

Significant diversification

The 3 months correlation between Asure and Natural is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and Natural Alternatives Internati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Alternatives 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 Natural Alternatives. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Alternatives has no effect on the direction of Asure Software i.e., Asure Software and Natural Alternatives go up and down completely randomly.

Pair Corralation between Asure Software and Natural Alternatives

Given the investment horizon of 90 days Asure Software is expected to under-perform the Natural Alternatives. In addition to that, Asure Software is 1.09 times more volatile than Natural Alternatives International. It trades about -0.07 of its total potential returns per unit of risk. Natural Alternatives International is currently generating about 0.17 per unit of volatility. If you would invest  281.00  in Natural Alternatives International on May 5, 2025 and sell it today you would earn a total of  80.00  from holding Natural Alternatives International or generate 28.47% return on investment over 90 days.

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

Asure Software  vs.  Natural Alternatives Internati

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 uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Natural Alternatives

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Natural Alternatives International are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating forward indicators, Natural Alternatives demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Asure Software and Natural Alternatives

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

The idea behind Asure Software and Natural Alternatives International 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..