Correlation Between Asmedia Technology and SS Healthcare
Can any of the company-specific risk be diversified away by investing in both Asmedia Technology and SS Healthcare 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 Asmedia Technology and SS Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asmedia Technology and SS Healthcare Holding, you can compare the effects of market volatilities on Asmedia Technology and SS Healthcare 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 Asmedia Technology with a short position of SS Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asmedia Technology and SS Healthcare.
Diversification Opportunities for Asmedia Technology and SS Healthcare
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asmedia and 4198 is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Asmedia Technology and SS Healthcare Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SS Healthcare Holding and Asmedia Technology 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 Asmedia Technology are associated (or correlated) with SS Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SS Healthcare Holding has no effect on the direction of Asmedia Technology i.e., Asmedia Technology and SS Healthcare go up and down completely randomly.
Pair Corralation between Asmedia Technology and SS Healthcare
Assuming the 90 days trading horizon Asmedia Technology is expected to generate 1.0 times more return on investment than SS Healthcare. However, Asmedia Technology is 1.0 times more volatile than SS Healthcare Holding. It trades about 0.15 of its potential returns per unit of risk. SS Healthcare Holding is currently generating about 0.01 per unit of risk. If you would invest 185,000 in Asmedia Technology on October 11, 2024 and sell it today you would earn a total of 17,000 from holding Asmedia Technology or generate 9.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asmedia Technology vs. SS Healthcare Holding
Performance |
| Timeline |
| Asmedia Technology |
| SS Healthcare Holding |
Asmedia Technology and SS Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asmedia Technology and SS Healthcare
The main advantage of trading using opposite Asmedia Technology and SS Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asmedia Technology position performs unexpectedly, SS Healthcare 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 SS Healthcare will offset losses from the drop in SS Healthcare's long position.| Asmedia Technology vs. Alchip Technologies | Asmedia Technology vs. Aspeed Technology | Asmedia Technology vs. Silergy Corp | Asmedia Technology vs. Global Unichip Corp |
| SS Healthcare vs. United Orthopedic | SS Healthcare vs. TTY Biopharm Co | SS Healthcare vs. Apex Biotechnology Corp | SS Healthcare vs. Information Technology Total |
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 CEOs Directory module to screen CEOs from public companies around the world.
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