Correlation Between ASE Industrial and Sunrun
Can any of the company-specific risk be diversified away by investing in both ASE Industrial and Sunrun 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 Sunrun 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 Sunrun Inc, you can compare the effects of market volatilities on ASE Industrial and Sunrun 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 Sunrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASE Industrial and Sunrun.
Diversification Opportunities for ASE Industrial and Sunrun
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between ASE and Sunrun is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding ASE Industrial Holding and Sunrun Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunrun Inc 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 Sunrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunrun Inc has no effect on the direction of ASE Industrial i.e., ASE Industrial and Sunrun go up and down completely randomly.
Pair Corralation between ASE Industrial and Sunrun
Considering the 90-day investment horizon ASE Industrial Holding is expected to generate 0.58 times more return on investment than Sunrun. However, ASE Industrial Holding is 1.73 times less risky than Sunrun. It trades about 0.21 of its potential returns per unit of risk. Sunrun Inc is currently generating about 0.07 per unit of risk. If you would invest 1,117 in ASE Industrial Holding on September 26, 2025 and sell it today you would earn a total of 438.00 from holding ASE Industrial Holding or generate 39.21% 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. Sunrun Inc
Performance |
| Timeline |
| ASE Industrial Holding |
| Sunrun Inc |
ASE Industrial and Sunrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASE Industrial and Sunrun
The main advantage of trading using opposite ASE Industrial and Sunrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASE Industrial position performs unexpectedly, Sunrun 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 Sunrun will offset losses from the drop in Sunrun's long position.| ASE Industrial vs. Sunrun Inc | ASE Industrial vs. CVR Energy | ASE Industrial vs. Murphy Oil | ASE Industrial vs. Valvoline |
| Sunrun vs. Enphase Energy | Sunrun vs. SolarEdge Technologies | Sunrun vs. Frontline | Sunrun vs. Core Natural Resources, |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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