Correlation Between GENERAL and ASE Industrial
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By analyzing existing cross correlation between GENERAL ELEC CAP and ASE Industrial Holding, you can compare the effects of market volatilities on GENERAL 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 GENERAL with a short position of ASE Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENERAL and ASE Industrial.
Diversification Opportunities for GENERAL and ASE Industrial
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between GENERAL and ASE is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL ELEC CAP 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 GENERAL 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 GENERAL ELEC CAP 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 GENERAL i.e., GENERAL and ASE Industrial go up and down completely randomly.
Pair Corralation between GENERAL and ASE Industrial
Assuming the 90 days trading horizon GENERAL ELEC CAP is expected to under-perform the ASE Industrial. But the bond apears to be less risky and, when comparing its historical volatility, GENERAL ELEC CAP is 2.3 times less risky than ASE Industrial. The bond trades about -0.02 of its potential returns per unit of risk. The ASE Industrial Holding is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 911.00 in ASE Industrial Holding on September 2, 2024 and sell it today you would earn a total of 61.00 from holding ASE Industrial Holding or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 32.81% |
| Values | Daily Returns |
GENERAL ELEC CAP vs. ASE Industrial Holding
Performance |
| Timeline |
| GENERAL ELEC CAP |
| ASE Industrial Holding |
GENERAL and ASE Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GENERAL and ASE Industrial
The main advantage of trading using opposite GENERAL and ASE Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENERAL 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.The idea behind GENERAL ELEC CAP and ASE Industrial Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ASE Industrial vs. NXP Semiconductors NV | ASE Industrial vs. GSI Technology | ASE Industrial vs. MaxLinear | ASE Industrial vs. Texas Instruments Incorporated |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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