Correlation Between Asm Pacific and AIXTRON SE
Can any of the company-specific risk be diversified away by investing in both Asm Pacific and AIXTRON SE 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 Asm Pacific and AIXTRON SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asm Pacific Technology and AIXTRON SE, you can compare the effects of market volatilities on Asm Pacific and AIXTRON SE 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 Asm Pacific with a short position of AIXTRON SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asm Pacific and AIXTRON SE.
Diversification Opportunities for Asm Pacific and AIXTRON SE
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asm and AIXTRON is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Asm Pacific Technology and AIXTRON SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIXTRON SE and Asm Pacific 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 Asm Pacific Technology are associated (or correlated) with AIXTRON SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIXTRON SE has no effect on the direction of Asm Pacific i.e., Asm Pacific and AIXTRON SE go up and down completely randomly.
Pair Corralation between Asm Pacific and AIXTRON SE
Assuming the 90 days horizon Asm Pacific Technology is expected to generate 0.94 times more return on investment than AIXTRON SE. However, Asm Pacific Technology is 1.07 times less risky than AIXTRON SE. It trades about -0.08 of its potential returns per unit of risk. AIXTRON SE is currently generating about -0.16 per unit of risk. If you would invest 2,857 in Asm Pacific Technology on November 3, 2024 and sell it today you would lose (119.00) from holding Asm Pacific Technology or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asm Pacific Technology vs. AIXTRON SE
Performance |
| Timeline |
| Asm Pacific Technology |
| AIXTRON SE |
Asm Pacific and AIXTRON SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asm Pacific and AIXTRON SE
The main advantage of trading using opposite Asm Pacific and AIXTRON SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asm Pacific position performs unexpectedly, AIXTRON SE 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 AIXTRON SE will offset losses from the drop in AIXTRON SE's long position.| Asm Pacific vs. Disco Corp ADR | Asm Pacific vs. Tokyo Electron | Asm Pacific vs. Lasertec | Asm Pacific vs. Sumco Corp ADR |
| AIXTRON SE vs. Sumco Corp ADR | AIXTRON SE vs. Disco Corp ADR | AIXTRON SE vs. Tokyo Electron | AIXTRON SE vs. Asm Pacific Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |