There are some literatures focusing on correlation character and the portfolio perfor- mance with that. However, it is hard to nd literatures directly showing any empirical evidence of correlation eect through a existing nancial asset. Using the publicly oered Two Asset Reverse Convertible (TARC) data, which embedded correlation fea- ture, we derive the theoretical price and study how correlation attributes to the value of the TARC. Also we ensure that correlation is an important factor to the issuer as a timer and a hedger. The existence of trade o relationship between as a timer, or a hedger enables us to understand the asset selection mechanism of the issuer.