Correlation Between Premier Foods and Asure Software

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

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

Diversification Opportunities for Premier Foods and Asure Software

0.13

Correlation Coefficient

Premier Foods  Asure Software

Average diversification

The 3 months correlation between Premier and Asure is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Premier Foods plc and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software and Premier Foods 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 Premier Foods plc 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 Premier Foods i.e., Premier Foods and Asure Software go up and down completely randomly.

Pair Corralation between Premier Foods and Asure Software

Assuming the 90 days horizon Premier Foods plc is expected to generate 0.51 times more return on investment than Asure Software. However, Premier Foods plc is 1.98 times less risky than Asure Software. It trades about 0.13 of its potential returns per unit of risk. Asure Software is currently generating about -0.07 per unit of risk. If you would invest  245.00  in Premier Foods plc on May 6, 2025 and sell it today you would earn a total of  30.00  from holding Premier Foods plc or generate 12.24% return on investment over 90 days.

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

Premier Foods plc  vs.  Asure Software

Premier Foods plc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Premier Foods plc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Premier Foods may actually be approaching a critical reversion point that can send shares even higher in September 2025.

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.

Pair Trading with Premier Foods and Asure Software

The main advantage of trading using opposite Premier Foods and Asure Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premier Foods 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.

The idea behind Premier Foods plc and Asure 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.