Correlation Between ASE Industrial and Sysgration
Can any of the company-specific risk be diversified away by investing in both ASE Industrial and Sysgration 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 ASE Industrial and Sysgration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASE Industrial Holding and Sysgration, you can compare the effects of market volatilities on ASE Industrial and Sysgration 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 ASE Industrial with a short position of Sysgration. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASE Industrial and Sysgration.
Diversification Opportunities for ASE Industrial and Sysgration
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ASE and Sysgration is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding ASE Industrial Holding and Sysgration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sysgration and ASE Industrial 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 ASE Industrial Holding are associated (or correlated) with Sysgration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sysgration has no effect on the direction of ASE Industrial i.e., ASE Industrial and Sysgration go up and down completely randomly.
Pair Corralation between ASE Industrial and Sysgration
Assuming the 90 days trading horizon ASE Industrial is expected to generate 2.82 times less return on investment than Sysgration. But when comparing it to its historical volatility, ASE Industrial Holding is 2.84 times less risky than Sysgration. It trades about 0.07 of its potential returns per unit of risk. Sysgration is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,815 in Sysgration on September 13, 2024 and sell it today you would earn a total of 195.00 from holding Sysgration or generate 5.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
ASE Industrial Holding vs. Sysgration
Performance |
| Timeline |
| ASE Industrial Holding |
| Sysgration |
ASE Industrial and Sysgration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASE Industrial and Sysgration
The main advantage of trading using opposite ASE Industrial and Sysgration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASE Industrial position performs unexpectedly, Sysgration 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 Sysgration will offset losses from the drop in Sysgration's long position.| ASE Industrial vs. AU Optronics | ASE Industrial vs. Innolux Corp | ASE Industrial vs. Ruentex Development Co | ASE Industrial vs. WiseChip Semiconductor |
| Sysgration vs. Integrated Service Technology | Sysgration vs. ASE Industrial Holding | Sysgration vs. eMemory Technology | Sysgration vs. Ruentex Development Co |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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