Correlation Between Asm Pacific and SCREEN Holdings
Can any of the company-specific risk be diversified away by investing in both Asm Pacific and SCREEN Holdings 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 SCREEN Holdings 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 SCREEN Holdings Co, you can compare the effects of market volatilities on Asm Pacific and SCREEN Holdings 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 SCREEN Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asm Pacific and SCREEN Holdings.
Diversification Opportunities for Asm Pacific and SCREEN Holdings
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Asm and SCREEN is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Asm Pacific Technology and SCREEN Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCREEN Holdings 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 SCREEN Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCREEN Holdings has no effect on the direction of Asm Pacific i.e., Asm Pacific and SCREEN Holdings go up and down completely randomly.
Pair Corralation between Asm Pacific and SCREEN Holdings
Assuming the 90 days horizon Asm Pacific Technology is expected to under-perform the SCREEN Holdings. But the pink sheet apears to be less risky and, when comparing its historical volatility, Asm Pacific Technology is 3.42 times less risky than SCREEN Holdings. The pink sheet trades about -0.1 of its potential returns per unit of risk. The SCREEN Holdings Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 6,389 in SCREEN Holdings Co on October 22, 2024 and sell it today you would earn a total of 708.00 from holding SCREEN Holdings Co or generate 11.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 18.03% |
| Values | Daily Returns |
Asm Pacific Technology vs. SCREEN Holdings Co
Performance |
| Timeline |
| Asm Pacific Technology |
| SCREEN Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Asm Pacific and SCREEN Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asm Pacific and SCREEN Holdings
The main advantage of trading using opposite Asm Pacific and SCREEN Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asm Pacific position performs unexpectedly, SCREEN Holdings 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 SCREEN Holdings will offset losses from the drop in SCREEN Holdings' long position.| Asm Pacific vs. Disco Corp ADR | Asm Pacific vs. Tokyo Electron | Asm Pacific vs. Lasertec | Asm Pacific vs. Sumco Corp ADR |
| SCREEN Holdings vs. Asm Pacific Technology | SCREEN Holdings vs. Disco Corp ADR | SCREEN Holdings vs. Tokyo Electron | SCREEN Holdings vs. Lasertec |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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