Correlation Between ASE Industrial and Atomera
Can any of the company-specific risk be diversified away by investing in both ASE Industrial and Atomera 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 Atomera 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 Atomera, you can compare the effects of market volatilities on ASE Industrial and Atomera 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 Atomera. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASE Industrial and Atomera.
Diversification Opportunities for ASE Industrial and Atomera
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between ASE and Atomera is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding ASE Industrial Holding and Atomera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomera 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 Atomera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomera has no effect on the direction of ASE Industrial i.e., ASE Industrial and Atomera go up and down completely randomly.
Pair Corralation between ASE Industrial and Atomera
Considering the 90-day investment horizon ASE Industrial Holding is expected to generate 0.42 times more return on investment than Atomera. However, ASE Industrial Holding is 2.4 times less risky than Atomera. It trades about 0.23 of its potential returns per unit of risk. Atomera is currently generating about -0.14 per unit of risk. If you would invest 972.00 in ASE Industrial Holding on June 7, 2025 and sell it today you would earn a total of 75.00 from holding ASE Industrial Holding or generate 7.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASE Industrial Holding vs. Atomera
Performance |
| Timeline |
| ASE Industrial Holding |
| Atomera |
ASE Industrial and Atomera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASE Industrial and Atomera
The main advantage of trading using opposite ASE Industrial and Atomera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASE Industrial position performs unexpectedly, Atomera 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 Atomera will offset losses from the drop in Atomera's long position.| ASE Industrial vs. United Microelectronics | ASE Industrial vs. Amkor Technology | ASE Industrial vs. Himax Technologies | ASE Industrial vs. Chunghwa Telecom Co |
| Atomera vs. Axcelis Technologies | Atomera vs. inTest | Atomera vs. Lam Research Corp | Atomera vs. Photronics |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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