Correlation Between ASE Industrial and I Minerals
Can any of the company-specific risk be diversified away by investing in both ASE Industrial and I Minerals 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 I Minerals 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 I Minerals, you can compare the effects of market volatilities on ASE Industrial and I Minerals 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 I Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASE Industrial and I Minerals.
Diversification Opportunities for ASE Industrial and I Minerals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ASE and IMAHF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ASE Industrial Holding and I Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Minerals 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 I Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Minerals has no effect on the direction of ASE Industrial i.e., ASE Industrial and I Minerals go up and down completely randomly.
Pair Corralation between ASE Industrial and I Minerals
Considering the 90-day investment horizon ASE Industrial is expected to generate 33.09 times less return on investment than I Minerals. But when comparing it to its historical volatility, ASE Industrial Holding is 26.74 times less risky than I Minerals. It trades about 0.06 of its potential returns per unit of risk. I Minerals is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1.00 in I Minerals on September 3, 2024 and sell it today you would earn a total of 0.50 from holding I Minerals or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
ASE Industrial Holding vs. I Minerals
Performance |
| Timeline |
| ASE Industrial Holding |
| I Minerals |
ASE Industrial and I Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASE Industrial and I Minerals
The main advantage of trading using opposite ASE Industrial and I Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASE Industrial position performs unexpectedly, I Minerals 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 I Minerals will offset losses from the drop in I Minerals' long position.| ASE Industrial vs. United Microelectronics | ASE Industrial vs. Amkor Technology | ASE Industrial vs. Himax Technologies | ASE Industrial vs. Chunghwa Telecom Co |
| I Minerals vs. Victorias Secret Co | I Minerals vs. First Ship Lease | I Minerals vs. U Haul Holding | I Minerals vs. PVH Corp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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