Correlation Between SCI Engineered and Asm Pacific
Can any of the company-specific risk be diversified away by investing in both SCI Engineered 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 SCI Engineered and Asm Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCI Engineered Materials and Asm Pacific Technology, you can compare the effects of market volatilities on SCI Engineered 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 SCI Engineered with a short position of Asm Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCI Engineered and Asm Pacific.
Diversification Opportunities for SCI Engineered and Asm Pacific
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCI and Asm is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding SCI Engineered Materials 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 SCI Engineered 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 SCI Engineered Materials 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 SCI Engineered i.e., SCI Engineered and Asm Pacific go up and down completely randomly.
Pair Corralation between SCI Engineered and Asm Pacific
Given the investment horizon of 90 days SCI Engineered is expected to generate 5.93 times less return on investment than Asm Pacific. In addition to that, SCI Engineered is 1.3 times more volatile than Asm Pacific Technology. It trades about 0.02 of its total potential returns per unit of risk. Asm Pacific Technology is currently generating about 0.19 per unit of volatility. If you would invest 2,043 in Asm Pacific Technology on June 1, 2025 and sell it today you would earn a total of 750.00 from holding Asm Pacific Technology or generate 36.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
SCI Engineered Materials vs. Asm Pacific Technology
Performance |
| Timeline |
| SCI Engineered Materials |
| Asm Pacific Technology |
SCI Engineered and Asm Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCI Engineered and Asm Pacific
The main advantage of trading using opposite SCI Engineered and Asm Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCI Engineered 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.| SCI Engineered vs. Surge Components | SCI Engineered vs. Solitron Devices | SCI Engineered vs. Table Trac | SCI Engineered vs. Ieh Corp |
| Asm Pacific vs. Disco Corp ADR | Asm Pacific vs. Tokyo Electron | Asm Pacific vs. Lasertec | Asm Pacific vs. Sumco Corp ADR |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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