Correlation Between ASPEN TECHINC and SERI INDUSTRIAL
Can any of the company-specific risk be diversified away by investing in both ASPEN TECHINC and SERI 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 ASPEN TECHINC and SERI INDUSTRIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASPEN TECHINC DL and SERI INDUSTRIAL EO, you can compare the effects of market volatilities on ASPEN TECHINC and SERI 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 ASPEN TECHINC with a short position of SERI INDUSTRIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASPEN TECHINC and SERI INDUSTRIAL.
Diversification Opportunities for ASPEN TECHINC and SERI INDUSTRIAL
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASPEN and SERI is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding ASPEN TECHINC DL and SERI INDUSTRIAL EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SERI INDUSTRIAL EO and ASPEN TECHINC 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 ASPEN TECHINC DL are associated (or correlated) with SERI INDUSTRIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SERI INDUSTRIAL EO has no effect on the direction of ASPEN TECHINC i.e., ASPEN TECHINC and SERI INDUSTRIAL go up and down completely randomly.
Pair Corralation between ASPEN TECHINC and SERI INDUSTRIAL
Assuming the 90 days horizon ASPEN TECHINC DL is expected to generate 0.17 times more return on investment than SERI INDUSTRIAL. However, ASPEN TECHINC DL is 5.95 times less risky than SERI INDUSTRIAL. It trades about 0.15 of its potential returns per unit of risk. SERI INDUSTRIAL EO is currently generating about -0.07 per unit of risk. If you would invest 23,200 in ASPEN TECHINC DL on October 16, 2024 and sell it today you would earn a total of 1,000.00 from holding ASPEN TECHINC DL or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASPEN TECHINC DL vs. SERI INDUSTRIAL EO
Performance |
| Timeline |
| ASPEN TECHINC DL |
| SERI INDUSTRIAL EO |
ASPEN TECHINC and SERI INDUSTRIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASPEN TECHINC and SERI INDUSTRIAL
The main advantage of trading using opposite ASPEN TECHINC and SERI INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASPEN TECHINC position performs unexpectedly, SERI 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 SERI INDUSTRIAL will offset losses from the drop in SERI INDUSTRIAL's long position.| ASPEN TECHINC vs. FIH MOBILE | ASPEN TECHINC vs. Vishay Intertechnology | ASPEN TECHINC vs. SCOTT TECHNOLOGY | ASPEN TECHINC vs. Align Technology |
| SERI INDUSTRIAL vs. ASPEN TECHINC DL | SERI INDUSTRIAL vs. GLOBUS MEDICAL A | SERI INDUSTRIAL vs. Bio Techne Corp | SERI INDUSTRIAL vs. MEDICAL FACILITIES NEW |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |