Correlation Between Ase Industrial and Perficient

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Can any of the company-specific risk be diversified away by investing in both Ase Industrial and Perficient 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 Ase Industrial and Perficient into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ase Industrial Holding and Perficient, you can compare the effects of market volatilities on Ase Industrial and Perficient 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 Ase Industrial with a short position of Perficient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ase Industrial and Perficient.

Diversification Opportunities for Ase Industrial and Perficient

0.46
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Ase Industrial and Perficient is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ase Industrial Holding and Perficient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perficient and Ase Industrial 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 Ase Industrial Holding are associated (or correlated) with Perficient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perficient has no effect on the direction of Ase Industrial i.e., Ase Industrial and Perficient go up and down completely randomly.

Pair Corralation between Ase Industrial and Perficient

Considering the 90-day investment horizon Ase Industrial Holding is expected to generate 1.19 times more return on investment than Perficient. However, Ase Industrial is 1.19 times more volatile than Perficient. It trades about 0.31 of its potential returns per unit of risk. Perficient is currently generating about 0.02 per unit of risk. If you would invest  520.00  in Ase Industrial Holding on August 28, 2022 and sell it today you would earn a total of  118.00  from holding Ase Industrial Holding or generate 22.69% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

Ase Industrial Holding  vs.  Perficient

 Performance (%) 
       Timeline  
Ase Industrial Holding 
Ase Industrial Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Ase Industrial Holding are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Ase Industrial showed solid returns over the last few months and may actually be approaching a breakup point.

Ase Industrial Price Channel

Perficient 
Perficient Performance
0 of 100
Over the last 90 days Perficient has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Perficient Price Channel

Ase Industrial and Perficient Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ase Industrial and Perficient

The main advantage of trading using opposite Ase Industrial and Perficient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ase Industrial position performs unexpectedly, Perficient 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 Perficient will offset losses from the drop in Perficient's long position.
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The idea behind Ase Industrial Holding and Perficient 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.
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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