Correlation Between ASE Industrial and First Ship
Can any of the company-specific risk be diversified away by investing in both ASE Industrial and First Ship 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 First Ship 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 First Ship Lease, you can compare the effects of market volatilities on ASE Industrial and First Ship 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 First Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASE Industrial and First Ship.
Diversification Opportunities for ASE Industrial and First Ship
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ASE and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ASE Industrial Holding and First Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Ship Lease 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 First Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Ship Lease has no effect on the direction of ASE Industrial i.e., ASE Industrial and First Ship go up and down completely randomly.
Pair Corralation between ASE Industrial and First Ship
If you would invest 969.00 in ASE Industrial Holding on September 12, 2024 and sell it today you would earn a total of 12.00 from holding ASE Industrial Holding or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASE Industrial Holding vs. First Ship Lease
Performance |
| Timeline |
| ASE Industrial Holding |
| First Ship Lease |
ASE Industrial and First Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASE Industrial and First Ship
The main advantage of trading using opposite ASE Industrial and First Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASE Industrial position performs unexpectedly, First Ship 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 First Ship will offset losses from the drop in First Ship's long position.| ASE Industrial vs. NVIDIA | ASE Industrial vs. Taiwan Semiconductor Manufacturing | ASE Industrial vs. Micron Technology | ASE Industrial vs. Qualcomm Incorporated |
| First Ship vs. United Rentals | First Ship vs. Ashtead Gro | First Ship vs. AerCap Holdings NV | First Ship vs. Fortress Transp Infra |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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