Correlation Between ASM International and Advantest
Can any of the company-specific risk be diversified away by investing in both ASM International and Advantest 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 ASM International and Advantest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASM International NV and Advantest, you can compare the effects of market volatilities on ASM International and Advantest 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 ASM International with a short position of Advantest. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASM International and Advantest.
Diversification Opportunities for ASM International and Advantest
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASM and Advantest is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding ASM International NV and Advantest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantest and ASM International 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 ASM International NV are associated (or correlated) with Advantest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantest has no effect on the direction of ASM International i.e., ASM International and Advantest go up and down completely randomly.
Pair Corralation between ASM International and Advantest
If you would invest 35,002 in ASM International NV on November 3, 2024 and sell it today you would earn a total of 0.00 from holding ASM International NV or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
ASM International NV vs. Advantest
Performance |
| Timeline |
| ASM International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Advantest |
ASM International and Advantest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASM International and Advantest
The main advantage of trading using opposite ASM International and Advantest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASM International position performs unexpectedly, Advantest 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 Advantest will offset losses from the drop in Advantest's long position.| ASM International vs. Disco Corp ADR | ASM International vs. Asm Pacific Technology | ASM International vs. Sumco Corp ADR | ASM International vs. Lasertec |
| Advantest vs. Tokyo Electron | Advantest vs. Ultra Clean Holdings | Advantest vs. Applied Materials | Advantest vs. Sumco Corp ADR |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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