Correlation Between ASML Holding and Lam Research
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By analyzing existing cross correlation between ASML Holding NV and Lam Research, you can compare the effects of market volatilities on ASML Holding and Lam Research 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 Lam Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Lam Research.
Diversification Opportunities for ASML Holding and Lam Research
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ASML and Lam is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Lam Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lam Research 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 Lam Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lam Research has no effect on the direction of ASML Holding i.e., ASML Holding and Lam Research go up and down completely randomly.
Pair Corralation between ASML Holding and Lam Research
Assuming the 90 days trading horizon ASML Holding NV is expected to under-perform the Lam Research. In addition to that, ASML Holding is 1.14 times more volatile than Lam Research. It trades about -0.06 of its total potential returns per unit of risk. Lam Research is currently generating about -0.03 per unit of volatility. If you would invest 8,101 in Lam Research on September 2, 2024 and sell it today you would lose (1,041) from holding Lam Research or give up 12.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASML Holding NV vs. Lam Research
Performance |
| Timeline |
| ASML Holding NV |
| Lam Research |
ASML Holding and Lam Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Lam Research
The main advantage of trading using opposite ASML Holding and Lam Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Lam Research 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 Lam Research will offset losses from the drop in Lam Research's long position.| ASML Holding vs. COSMOSTEEL HLDGS | ASML Holding vs. RELIANCE STEEL AL | ASML Holding vs. MITSUBISHI STEEL MFG | ASML Holding vs. THAI BEVERAGE |
| Lam Research vs. Superior Plus Corp | Lam Research vs. NMI Holdings | Lam Research vs. Origin Agritech | Lam Research vs. SIVERS SEMICONDUCTORS AB |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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