Correlation Between ASE Industrial and Grayscale Decentralized

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Can any of the company-specific risk be diversified away by investing in both ASE Industrial and Grayscale Decentralized 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 Grayscale Decentralized 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 Grayscale Decentralized Finance, you can compare the effects of market volatilities on ASE Industrial and Grayscale Decentralized 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 Grayscale Decentralized. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASE Industrial and Grayscale Decentralized.

Diversification Opportunities for ASE Industrial and Grayscale Decentralized

-0.07
  Correlation Coefficient

Good diversification

The 3 months correlation between ASE and Grayscale is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding ASE Industrial Holding and Grayscale Decentralized Financ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Decentralized 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 Grayscale Decentralized. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Decentralized has no effect on the direction of ASE Industrial i.e., ASE Industrial and Grayscale Decentralized go up and down completely randomly.

Pair Corralation between ASE Industrial and Grayscale Decentralized

Considering the 90-day investment horizon ASE Industrial is expected to generate 32.94 times less return on investment than Grayscale Decentralized. But when comparing it to its historical volatility, ASE Industrial Holding is 24.82 times less risky than Grayscale Decentralized. It trades about 0.05 of its potential returns per unit of risk. Grayscale Decentralized Finance is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,600  in Grayscale Decentralized Finance on September 12, 2024 and sell it today you would earn a total of  3,125  from holding Grayscale Decentralized Finance or generate 195.31% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.72%
ValuesDaily Returns

ASE Industrial Holding  vs.  Grayscale Decentralized Financ

 Performance 
       Timeline  
ASE Industrial Holding 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in ASE Industrial Holding are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, ASE Industrial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Grayscale Decentralized 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Grayscale Decentralized Finance are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, Grayscale Decentralized reported solid returns over the last few months and may actually be approaching a breakup point.

ASE Industrial and Grayscale Decentralized Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ASE Industrial and Grayscale Decentralized

The main advantage of trading using opposite ASE Industrial and Grayscale Decentralized positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASE Industrial position performs unexpectedly, Grayscale Decentralized 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 Grayscale Decentralized will offset losses from the drop in Grayscale Decentralized's long position.
The idea behind ASE Industrial Holding and Grayscale Decentralized Finance pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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