Correlation Between KVH Industries and ASE Industrial
Can any of the company-specific risk be diversified away by investing in both KVH Industries 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 KVH Industries and ASE Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KVH Industries and ASE Industrial Holding, you can compare the effects of market volatilities on KVH Industries 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 KVH Industries with a short position of ASE Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and ASE Industrial.
Diversification Opportunities for KVH Industries and ASE Industrial
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between KVH and ASE is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries 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 KVH Industries 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 KVH Industries 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 KVH Industries i.e., KVH Industries and ASE Industrial go up and down completely randomly.
Pair Corralation between KVH Industries and ASE Industrial
Given the investment horizon of 90 days KVH Industries is expected to generate 1.12 times more return on investment than ASE Industrial. However, KVH Industries is 1.12 times more volatile than ASE Industrial Holding. It trades about 0.53 of its potential returns per unit of risk. ASE Industrial Holding is currently generating about 0.11 per unit of risk. If you would invest 457.00 in KVH Industries on September 4, 2024 and sell it today you would earn a total of 118.00 from holding KVH Industries or generate 25.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KVH Industries vs. ASE Industrial Holding
Performance |
| Timeline |
| KVH Industries |
| ASE Industrial Holding |
KVH Industries and ASE Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KVH Industries and ASE Industrial
The main advantage of trading using opposite KVH Industries and ASE Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries 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.| KVH Industries vs. Telesat Corp | KVH Industries vs. Comtech Telecommunications Corp | KVH Industries vs. Knowles Cor | KVH Industries vs. Ituran Location and |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |