Correlation Between DIH Holding and ASE Industrial
Can any of the company-specific risk be diversified away by investing in both DIH Holding and ASE Industrial 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 DIH Holding and ASE Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DIH Holding US, and ASE Industrial Holding, you can compare the effects of market volatilities on DIH Holding and ASE Industrial 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 DIH Holding with a short position of ASE Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of DIH Holding and ASE Industrial.
Diversification Opportunities for DIH Holding and ASE Industrial
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DIH and ASE is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding DIH Holding US, and ASE Industrial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASE Industrial Holding and DIH Holding 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 DIH Holding US, are associated (or correlated) with ASE Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASE Industrial Holding has no effect on the direction of DIH Holding i.e., DIH Holding and ASE Industrial go up and down completely randomly.
Pair Corralation between DIH Holding and ASE Industrial
Assuming the 90 days horizon DIH Holding US, is expected to generate 8.45 times more return on investment than ASE Industrial. However, DIH Holding is 8.45 times more volatile than ASE Industrial Holding. It trades about 0.11 of its potential returns per unit of risk. ASE Industrial Holding is currently generating about 0.03 per unit of risk. If you would invest 1.50 in DIH Holding US, on October 22, 2024 and sell it today you would earn a total of 2.85 from holding DIH Holding US, or generate 190.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.67% |
| Values | Daily Returns |
DIH Holding US, vs. ASE Industrial Holding
Performance |
| Timeline |
| DIH Holding US, |
| ASE Industrial Holding |
DIH Holding and ASE Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DIH Holding and ASE Industrial
The main advantage of trading using opposite DIH Holding and ASE Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DIH Holding position performs unexpectedly, ASE Industrial 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 ASE Industrial will offset losses from the drop in ASE Industrial's long position.| DIH Holding vs. Altair Engineering | DIH Holding vs. Mayfair Gold Corp | DIH Holding vs. EvoAir Holdings | DIH Holding vs. Finnair Oyj |
| ASE Industrial vs. United Microelectronics | ASE Industrial vs. Amkor Technology | ASE Industrial vs. Himax Technologies | ASE Industrial vs. Chunghwa Telecom Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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