Correlation Between Grupo Carso and ASM Pacific

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

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

Diversification Opportunities for Grupo Carso and ASM Pacific

0.43

Correlation Coefficient

Grupo Carso  ASM Pacific

Very weak diversification

The 3 months correlation between Grupo and ASM is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB 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 Grupo Carso 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 Grupo Carso SAB 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 Grupo Carso i.e., Grupo Carso and ASM Pacific go up and down completely randomly.

Pair Corralation between Grupo Carso and ASM Pacific

Assuming the 90 days horizon Grupo Carso is expected to generate 2.01 times less return on investment than ASM Pacific. In addition to that, Grupo Carso is 1.16 times more volatile than ASM Pacific Technology. It trades about 0.08 of its total potential returns per unit of risk. ASM Pacific Technology is currently generating about 0.18 per unit of volatility. If you would invest  534.00  in ASM Pacific Technology on April 22, 2025 and sell it today you would earn a total of  161.00  from holding ASM Pacific Technology or generate 30.15% return on investment over 90 days.

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

Grupo Carso SAB  vs.  ASM Pacific Technology

Grupo Carso SAB

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Carso SAB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Grupo Carso reported solid returns over the last few months and may actually be approaching a breakup point.

ASM Pacific Technology

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ASM Pacific Technology are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, ASM Pacific reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Grupo Carso and ASM Pacific

The main advantage of trading using opposite Grupo Carso and ASM Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso 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.

The idea behind Grupo Carso SAB and ASM Pacific Technology 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.