Correlation Between ASE Industrial and Smart Global
Can any of the company-specific risk be diversified away by investing in both ASE Industrial and Smart Global 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 Smart Global 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 Smart Global Holdings, you can compare the effects of market volatilities on ASE Industrial and Smart Global 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 Smart Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASE Industrial and Smart Global.
Diversification Opportunities for ASE Industrial and Smart Global
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASE and Smart is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding ASE Industrial Holding and Smart Global Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Global Holdings 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 Smart Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Global Holdings has no effect on the direction of ASE Industrial i.e., ASE Industrial and Smart Global go up and down completely randomly.
Pair Corralation between ASE Industrial and Smart Global
If you would invest 2,041 in Smart Global Holdings on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Smart Global Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
ASE Industrial Holding vs. Smart Global Holdings
Performance |
| Timeline |
| ASE Industrial Holding |
| Smart Global Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
ASE Industrial and Smart Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASE Industrial and Smart Global
The main advantage of trading using opposite ASE Industrial and Smart Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASE Industrial position performs unexpectedly, Smart Global 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 Smart Global will offset losses from the drop in Smart Global's long position.| ASE Industrial vs. United Microelectronics | ASE Industrial vs. Amkor Technology | ASE Industrial vs. Himax Technologies | ASE Industrial vs. Chunghwa Telecom Co |
| Smart Global vs. Silicon Motion Technology | Smart Global vs. MACOM Technology Solutions | Smart Global vs. Semtech | Smart Global vs. Alpha and Omega |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |