Correlation Between Shin Etsu and ASP Isotopes

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

By analyzing existing cross correlation between Shin Etsu Chemical Co and ASP Isotopes Common, you can compare the effects of market volatilities on Shin Etsu and ASP Isotopes 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 Shin Etsu with a short position of ASP Isotopes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Etsu and ASP Isotopes.

Diversification Opportunities for Shin Etsu and ASP Isotopes

-0.25

Correlation Coefficient

Shin Etsu  ASP Isotopes

Very good diversification

The 3 months correlation between Shin and ASP is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shin Etsu Chemical Co and ASP Isotopes Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASP Isotopes Common and Shin Etsu 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 Shin Etsu Chemical Co are associated (or correlated) with ASP Isotopes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASP Isotopes Common has no effect on the direction of Shin Etsu i.e., Shin Etsu and ASP Isotopes go up and down completely randomly.

Pair Corralation between Shin Etsu and ASP Isotopes

Assuming the 90 days horizon Shin Etsu Chemical Co is expected to under-perform the ASP Isotopes. But the pink sheet apears to be less risky and, when comparing its historical volatility, Shin Etsu Chemical Co is 3.2 times less risky than ASP Isotopes. The pink sheet trades about -0.02 of its potential returns per unit of risk. The ASP Isotopes Common is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  700.00  in ASP Isotopes Common on July 1, 2025 and sell it today you would earn a total of  355.00  from holding ASP Isotopes Common or generate 50.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Shin Etsu Chemical Co  vs.  ASP Isotopes Common

Shin Etsu Chemical

Risk-Adjusted Performance

Weakest

Over the last 90 days Shin Etsu Chemical Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, Shin Etsu is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

ASP Isotopes Common

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ASP Isotopes Common are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, ASP Isotopes demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Shin Etsu and ASP Isotopes

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

The idea behind Shin Etsu Chemical Co and ASP Isotopes Common 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.