Correlation Between Easy Software and ASM Pacific
Can any of the company-specific risk be diversified away by investing in both Easy Software and ASM Pacific 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 Easy Software and ASM Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Easy Software AG and ASM Pacific Technology, you can compare the effects of market volatilities on Easy Software and ASM Pacific 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 Easy Software with a short position of ASM Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easy Software and ASM Pacific.
Diversification Opportunities for Easy Software and ASM Pacific
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Easy and ASM is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Easy Software AG and ASM Pacific Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASM Pacific Technology and Easy Software 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 Easy Software AG are associated (or correlated) with ASM Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASM Pacific Technology has no effect on the direction of Easy Software i.e., Easy Software and ASM Pacific go up and down completely randomly.
Pair Corralation between Easy Software and ASM Pacific
Assuming the 90 days trading horizon Easy Software is expected to generate 3.14 times less return on investment than ASM Pacific. In addition to that, Easy Software is 1.31 times more volatile than ASM Pacific Technology. It trades about 0.04 of its total potential returns per unit of risk. ASM Pacific Technology is currently generating about 0.15 per unit of volatility. If you would invest 747.00 in ASM Pacific Technology on July 25, 2025 and sell it today you would earn a total of 203.00 from holding ASM Pacific Technology or generate 27.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easy Software AG vs. ASM Pacific Technology
Performance |
| Timeline |
| Easy Software AG |
| ASM Pacific Technology |
Easy Software and ASM Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easy Software and ASM Pacific
The main advantage of trading using opposite Easy Software and ASM Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easy Software position performs unexpectedly, ASM Pacific 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 ASM Pacific will offset losses from the drop in ASM Pacific's long position.| Easy Software vs. Geely Automobile Holdings | Easy Software vs. Zoom Video Communications | Easy Software vs. China Yongda Automobiles | Easy Software vs. Comtech Telecommunications Corp |
| ASM Pacific vs. VIVA WINE GROUP | ASM Pacific vs. Yuexiu Transport Infrastructure | ASM Pacific vs. Tri Pointe Homes | ASM Pacific vs. BROADWIND ENRGY |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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