Correlation Between ASML Holding and KLA
Specify exactly 2 symbols:
By analyzing existing cross correlation between ASML Holding NV and KLA Corporation, you can compare the effects of market volatilities on ASML Holding and KLA 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 ASML Holding with a short position of KLA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and KLA.
Diversification Opportunities for ASML Holding and KLA
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ASML and KLA is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and KLA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLA Corporation and ASML Holding 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 ASML Holding NV are associated (or correlated) with KLA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLA Corporation has no effect on the direction of ASML Holding i.e., ASML Holding and KLA go up and down completely randomly.
Pair Corralation between ASML Holding and KLA
Assuming the 90 days trading horizon ASML Holding NV is expected to generate 1.03 times more return on investment than KLA. However, ASML Holding is 1.03 times more volatile than KLA Corporation. It trades about 0.01 of its potential returns per unit of risk. KLA Corporation is currently generating about -0.02 per unit of risk. If you would invest 65,398 in ASML Holding NV on August 28, 2024 and sell it today you would lose (178.00) from holding ASML Holding NV or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASML Holding NV vs. KLA Corp.
Performance |
| Timeline |
| ASML Holding NV |
| KLA Corporation |
ASML Holding and KLA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and KLA
The main advantage of trading using opposite ASML Holding and KLA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, KLA 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 KLA will offset losses from the drop in KLA's long position.| ASML Holding vs. ASML HOLDING NY | ASML Holding vs. Applied Materials | ASML Holding vs. Superior Plus Corp | ASML Holding vs. NMI Holdings |
| KLA vs. Gaztransport Technigaz SA | KLA vs. Jupiter Fund Management | KLA vs. Transportadora de Gas | KLA vs. Sims Metal Management |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |