Correlation Between Stepan and ASEP Medical
Can any of the company-specific risk be diversified away by investing in both Stepan and ASEP Medical 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 Stepan and ASEP Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stepan Company and ASEP Medical Holdings, you can compare the effects of market volatilities on Stepan and ASEP Medical 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 Stepan with a short position of ASEP Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stepan and ASEP Medical.
Diversification Opportunities for Stepan and ASEP Medical
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Stepan and ASEP is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Stepan Company and ASEP Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASEP Medical Holdings and Stepan 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 Stepan Company are associated (or correlated) with ASEP Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASEP Medical Holdings has no effect on the direction of Stepan i.e., Stepan and ASEP Medical go up and down completely randomly.
Pair Corralation between Stepan and ASEP Medical
If you would invest 5,513 in Stepan Company on March 30, 2025 and sell it today you would earn a total of 28.00 from holding Stepan Company or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stepan Company vs. ASEP Medical Holdings
Performance |
| Timeline |
| Stepan Company |
| ASEP Medical Holdings |
Stepan and ASEP Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stepan and ASEP Medical
The main advantage of trading using opposite Stepan and ASEP Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stepan position performs unexpectedly, ASEP Medical 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 ASEP Medical will offset losses from the drop in ASEP Medical's long position.The idea behind Stepan Company and ASEP Medical Holdings 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.| ASEP Medical vs. GE Vernova LLC | ASEP Medical vs. Vistra Energy Corp | ASEP Medical vs. Mills Music Trust | ASEP Medical vs. Kenon Holdings |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |