Correlation Between ASE Industrial and GSR II
Can any of the company-specific risk be diversified away by investing in both ASE Industrial and GSR II 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 GSR II 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 GSR II Meteora, you can compare the effects of market volatilities on ASE Industrial and GSR II 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 GSR II. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASE Industrial and GSR II.
Diversification Opportunities for ASE Industrial and GSR II
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between ASE and GSR is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding ASE Industrial Holding and GSR II Meteora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSR II Meteora 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 GSR II. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSR II Meteora has no effect on the direction of ASE Industrial i.e., ASE Industrial and GSR II go up and down completely randomly.
Pair Corralation between ASE Industrial and GSR II
If you would invest 961.00 in ASE Industrial Holding on September 5, 2024 and sell it today you would earn a total of 30.00 from holding ASE Industrial Holding or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
ASE Industrial Holding vs. GSR II Meteora
Performance |
| Timeline |
| ASE Industrial Holding |
| GSR II Meteora |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ASE Industrial and GSR II Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASE Industrial and GSR II
The main advantage of trading using opposite ASE Industrial and GSR II positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASE Industrial position performs unexpectedly, GSR II 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 GSR II will offset losses from the drop in GSR II's long position.| ASE Industrial vs. NXP Semiconductors NV | ASE Industrial vs. Monolithic Power Systems | ASE Industrial vs. ON Semiconductor | ASE Industrial vs. GSI Technology |
| GSR II vs. Coupang LLC | GSR II vs. Tower Semiconductor | GSR II vs. Titan Machinery | GSR II vs. ASE Industrial Holding |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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