Correlation Between ASE Industrial and Far East
Can any of the company-specific risk be diversified away by investing in both ASE Industrial and Far East 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 Far East 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 Far East Wind, you can compare the effects of market volatilities on ASE Industrial and Far East 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 Far East. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASE Industrial and Far East.
Diversification Opportunities for ASE Industrial and Far East
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ASE and Far is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ASE Industrial Holding and Far East Wind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Far East Wind 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 Far East. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Far East Wind has no effect on the direction of ASE Industrial i.e., ASE Industrial and Far East go up and down completely randomly.
Pair Corralation between ASE Industrial and Far East
If you would invest 0.01 in Far East Wind on January 3, 2025 and sell it today you would lose 0.00 from holding Far East Wind or give up 0.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASE Industrial Holding vs. Far East Wind
Performance |
| Timeline |
| ASE Industrial Holding |
| Far East Wind |
ASE Industrial and Far East Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASE Industrial and Far East
The main advantage of trading using opposite ASE Industrial and Far East positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASE Industrial position performs unexpectedly, Far East 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 Far East will offset losses from the drop in Far East's long position.| ASE Industrial vs. United Microelectronics | ASE Industrial vs. Amkor Technology | ASE Industrial vs. Himax Technologies | ASE Industrial vs. Chunghwa Telecom Co |
| Far East vs. Verde Clean Fuels | Far East vs. ReNew Energy Global | Far East vs. Ellomay Capital | Far East vs. Eco Wave Power |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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