Correlation Between WISA Old and ASE Industrial

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

By analyzing existing cross correlation between WISA Old and ASE Industrial Holding, you can compare the effects of market volatilities on WISA Old and ASE Industrial 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 WISA Old with a short position of ASE Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of WISA Old and ASE Industrial.

Diversification Opportunities for WISA Old and ASE Industrial

0.0

Correlation Coefficient

WISA Old  ASE Industrial

Pay attention - limited upside

The 3 months correlation between WISA and ASE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WISA Old and ASE Industrial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASE Industrial Holding and WISA Old 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 WISA Old are associated (or correlated) with ASE Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASE Industrial Holding has no effect on the direction of WISA Old i.e., WISA Old and ASE Industrial go up and down completely randomly.

Pair Corralation between WISA Old and ASE Industrial

If you would invest  875.00  in ASE Industrial Holding on May 4, 2025 and sell it today you would earn a total of  126.00  from holding ASE Industrial Holding or generate 14.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

WISA Old  vs.  ASE Industrial Holding

WISA Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days WISA Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, WISA Old is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

ASE Industrial Holding

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ASE Industrial Holding are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, ASE Industrial showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with WISA Old and ASE Industrial

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

The idea behind WISA Old and ASE Industrial Holding 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.