Correlation Between ASE Industrial and Marvel Entertainment
Can any of the company-specific risk be diversified away by investing in both ASE Industrial and Marvel Entertainment 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 Marvel Entertainment 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 Marvel Entertainment, you can compare the effects of market volatilities on ASE Industrial and Marvel Entertainment 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 Marvel Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASE Industrial and Marvel Entertainment.
Diversification Opportunities for ASE Industrial and Marvel Entertainment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ASE and Marvel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ASE Industrial Holding and Marvel Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marvel Entertainment 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 Marvel Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marvel Entertainment has no effect on the direction of ASE Industrial i.e., ASE Industrial and Marvel Entertainment go up and down completely randomly.
Pair Corralation between ASE Industrial and Marvel Entertainment
If you would invest 961.00 in ASE Industrial Holding on September 3, 2024 and sell it today you would earn a total of 11.00 from holding ASE Industrial Holding or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ASE Industrial Holding vs. Marvel Entertainment
Performance |
| Timeline |
| ASE Industrial Holding |
| Marvel Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ASE Industrial and Marvel Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASE Industrial and Marvel Entertainment
The main advantage of trading using opposite ASE Industrial and Marvel Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASE Industrial position performs unexpectedly, Marvel Entertainment 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 Marvel Entertainment will offset losses from the drop in Marvel Entertainment's long position.| ASE Industrial vs. United Microelectronics | ASE Industrial vs. Amkor Technology | ASE Industrial vs. Himax Technologies | ASE Industrial vs. Chunghwa Telecom Co |
| Marvel Entertainment vs. ASE Industrial Holding | Marvel Entertainment vs. Micron Technology | Marvel Entertainment vs. Arm Holdings plc | Marvel Entertainment vs. ON Semiconductor |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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