Correlation Between Asm Pacific and Snap

Can any of the company-specific risk be diversified away by investing in both Asm Pacific and Snap 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 Asm Pacific and Snap into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Asm Pacific Technology and Snap Inc, you can compare the effects of market volatilities on Asm Pacific and Snap 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 Asm Pacific with a short position of Snap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asm Pacific and Snap.

Diversification Opportunities for Asm Pacific and Snap

-0.46

Correlation Coefficient

Asm Pacific  Snap

Very good diversification

The 3 months correlation between Asm and Snap is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Asm Pacific Technology and Snap Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snap Inc and Asm Pacific 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 Asm Pacific Technology are associated (or correlated) with Snap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snap Inc has no effect on the direction of Asm Pacific i.e., Asm Pacific and Snap go up and down completely randomly.

Pair Corralation between Asm Pacific and Snap

Assuming the 90 days horizon Asm Pacific Technology is expected to generate 0.87 times more return on investment than Snap. However, Asm Pacific Technology is 1.15 times less risky than Snap. It trades about 0.22 of its potential returns per unit of risk. Snap Inc is currently generating about -0.01 per unit of risk. If you would invest  2,209  in Asm Pacific Technology on July 6, 2025 and sell it today you would earn a total of  1,061  from holding Asm Pacific Technology or generate 48.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Asm Pacific Technology  vs.  Snap Inc

Asm Pacific Technology

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Asm Pacific Technology are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Asm Pacific showed solid returns over the last few months and may actually be approaching a breakup point.

Snap Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Snap Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Snap is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Asm Pacific and Snap

The main advantage of trading using opposite Asm Pacific and Snap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asm Pacific position performs unexpectedly, Snap 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 Snap will offset losses from the drop in Snap's long position.

The idea behind Asm Pacific Technology and Snap Inc 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.

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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.