Correlation Between Elmos Semiconductor and ASE Industrial
Can any of the company-specific risk be diversified away by investing in both Elmos Semiconductor 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 Elmos Semiconductor and ASE Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elmos Semiconductor SE and ASE Industrial Holding, you can compare the effects of market volatilities on Elmos Semiconductor 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 Elmos Semiconductor with a short position of ASE Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elmos Semiconductor and ASE Industrial.
Diversification Opportunities for Elmos Semiconductor and ASE Industrial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elmos and ASE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elmos Semiconductor SE 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 Elmos Semiconductor 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 Elmos Semiconductor SE 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 Elmos Semiconductor i.e., Elmos Semiconductor and ASE Industrial go up and down completely randomly.
Pair Corralation between Elmos Semiconductor and ASE Industrial
Assuming the 90 days horizon Elmos Semiconductor SE is expected to generate 0.67 times more return on investment than ASE Industrial. However, Elmos Semiconductor SE is 1.48 times less risky than ASE Industrial. It trades about 0.09 of its potential returns per unit of risk. ASE Industrial Holding is currently generating about 0.04 per unit of risk. If you would invest 6,639 in Elmos Semiconductor SE on September 3, 2024 and sell it today you would earn a total of 2,284 from holding Elmos Semiconductor SE or generate 34.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elmos Semiconductor SE vs. ASE Industrial Holding
Performance |
| Timeline |
| Elmos Semiconductor |
| ASE Industrial Holding |
Elmos Semiconductor and ASE Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elmos Semiconductor and ASE Industrial
The main advantage of trading using opposite Elmos Semiconductor and ASE Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elmos Semiconductor 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.| Elmos Semiconductor vs. Legacy Education | Elmos Semiconductor vs. Apple Inc | Elmos Semiconductor vs. NVIDIA | Elmos Semiconductor vs. Microsoft |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |