Correlation Between ASE Industrial and Inhibrx
Can any of the company-specific risk be diversified away by investing in both ASE Industrial and Inhibrx 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 Inhibrx 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 Inhibrx, you can compare the effects of market volatilities on ASE Industrial and Inhibrx 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 Inhibrx. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASE Industrial and Inhibrx.
Diversification Opportunities for ASE Industrial and Inhibrx
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ASE and Inhibrx is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding ASE Industrial Holding and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx 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 Inhibrx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inhibrx has no effect on the direction of ASE Industrial i.e., ASE Industrial and Inhibrx go up and down completely randomly.
Pair Corralation between ASE Industrial and Inhibrx
Considering the 90-day investment horizon ASE Industrial Holding is expected to generate 0.57 times more return on investment than Inhibrx. However, ASE Industrial Holding is 1.75 times less risky than Inhibrx. It trades about 0.08 of its potential returns per unit of risk. Inhibrx is currently generating about -0.03 per unit of risk. 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 | 100.0% |
| Values | Daily Returns |
ASE Industrial Holding vs. Inhibrx
Performance |
| Timeline |
| ASE Industrial Holding |
| Inhibrx |
ASE Industrial and Inhibrx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASE Industrial and Inhibrx
The main advantage of trading using opposite ASE Industrial and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASE Industrial position performs unexpectedly, Inhibrx 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 Inhibrx will offset losses from the drop in Inhibrx'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 |
| Inhibrx vs. Candel Therapeutics | Inhibrx vs. Cingulate Warrants | Inhibrx vs. Unicycive Therapeutics | Inhibrx vs. Cardio Diagnostics Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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