Correlation Between Advantest and ASM International
Can any of the company-specific risk be diversified away by investing in both Advantest and ASM International 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 Advantest and ASM International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantest and ASM International NV, you can compare the effects of market volatilities on Advantest and ASM International 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 Advantest with a short position of ASM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantest and ASM International.
Diversification Opportunities for Advantest and ASM International
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advantest and ASM is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Advantest and ASM International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASM International and Advantest 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 Advantest are associated (or correlated) with ASM International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASM International has no effect on the direction of Advantest i.e., Advantest and ASM International go up and down completely randomly.
Pair Corralation between Advantest and ASM International
If you would invest 3,074 in Advantest on August 24, 2024 and sell it today you would earn a total of 3,176 from holding Advantest or generate 103.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.53% |
| Values | Daily Returns |
Advantest vs. ASM International NV
Performance |
| Timeline |
| Advantest |
| ASM International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Advantest and ASM International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantest and ASM International
The main advantage of trading using opposite Advantest and ASM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantest position performs unexpectedly, ASM International 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 International will offset losses from the drop in ASM International's long position.| Advantest vs. ASML Holding NV | Advantest vs. ASML Holding NV | Advantest vs. Applied Materials | Advantest vs. Lam Research Corp |
| ASM International vs. Disco Corp ADR | ASM International vs. Asm Pacific Technology | ASM International vs. Sumco Corp ADR | ASM International vs. Lasertec |
Check out your portfolio center.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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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