Correlation Between ASE Industrial and Sonix Technology
Can any of the company-specific risk be diversified away by investing in both ASE Industrial and Sonix Technology 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 Sonix Technology 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 Sonix Technology Co, you can compare the effects of market volatilities on ASE Industrial and Sonix Technology 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 Sonix Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASE Industrial and Sonix Technology.
Diversification Opportunities for ASE Industrial and Sonix Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ASE and Sonix is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ASE Industrial Holding and Sonix Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonix Technology 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 Sonix Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonix Technology has no effect on the direction of ASE Industrial i.e., ASE Industrial and Sonix Technology go up and down completely randomly.
Pair Corralation between ASE Industrial and Sonix Technology
If you would invest 15,250 in ASE Industrial Holding on September 4, 2024 and sell it today you would earn a total of 200.00 from holding ASE Industrial Holding or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
ASE Industrial Holding vs. Sonix Technology Co
Performance |
| Timeline |
| ASE Industrial Holding |
| Sonix Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ASE Industrial and Sonix Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASE Industrial and Sonix Technology
The main advantage of trading using opposite ASE Industrial and Sonix Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASE Industrial position performs unexpectedly, Sonix Technology 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 Sonix Technology will offset losses from the drop in Sonix Technology's long position.| ASE Industrial vs. Taiwan Semiconductor Manufacturing | ASE Industrial vs. Yang Ming Marine | ASE Industrial vs. AU Optronics | ASE Industrial vs. Innolux Corp |
| Sonix Technology vs. Novatek Microelectronics Corp | Sonix Technology vs. Holtek Semiconductor | Sonix Technology vs. Sunplus Technology Co | Sonix Technology vs. Elan Microelectronics Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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