Correlation Between ASML HOLDING and InTest

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Can any of the company-specific risk be diversified away by investing in both ASML HOLDING and InTest 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 ASML HOLDING and InTest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASML HOLDING NY and inTest, you can compare the effects of market volatilities on ASML HOLDING and InTest 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 InTest. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML HOLDING and InTest.

Diversification Opportunities for ASML HOLDING and InTest

0.85
  Correlation Coefficient

Very poor diversification

The 3 months correlation between ASML and InTest is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding ASML HOLDING NY and inTest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on inTest 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 NY are associated (or correlated) with InTest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of inTest has no effect on the direction of ASML HOLDING i.e., ASML HOLDING and InTest go up and down completely randomly.

Pair Corralation between ASML HOLDING and InTest

Assuming the 90 days trading horizon ASML HOLDING NY is expected to generate 0.74 times more return on investment than InTest. However, ASML HOLDING NY is 1.36 times less risky than InTest. It trades about 0.27 of its potential returns per unit of risk. inTest is currently generating about 0.14 per unit of risk. If you would invest  84,687  in ASML HOLDING NY on November 24, 2025 and sell it today you would earn a total of  41,313  from holding ASML HOLDING NY or generate 48.78% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

ASML HOLDING NY  vs.  inTest

 Performance 
       Timeline  
ASML HOLDING NY 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ASML HOLDING NY are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, ASML HOLDING reported solid returns over the last few months and may actually be approaching a breakup point.
inTest 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in inTest are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, InTest unveiled solid returns over the last few months and may actually be approaching a breakup point.

ASML HOLDING and InTest Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ASML HOLDING and InTest

The main advantage of trading using opposite ASML HOLDING and InTest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML HOLDING position performs unexpectedly, InTest 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 InTest will offset losses from the drop in InTest's long position.
The idea behind ASML HOLDING NY and inTest 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.
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

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