Correlation Between ASM International and AIXTRON SE
Can any of the company-specific risk be diversified away by investing in both ASM International and AIXTRON SE 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 AIXTRON SE 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 AIXTRON SE, you can compare the effects of market volatilities on ASM International and AIXTRON SE 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 AIXTRON SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASM International and AIXTRON SE.
Diversification Opportunities for ASM International and AIXTRON SE
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASM and AIXTRON is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding ASM International NV and AIXTRON SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIXTRON SE 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 AIXTRON SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIXTRON SE has no effect on the direction of ASM International i.e., ASM International and AIXTRON SE go up and down completely randomly.
Pair Corralation between ASM International and AIXTRON SE
If you would invest 35,002 in ASM International NV on September 2, 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 | Very Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
ASM International NV vs. AIXTRON SE
Performance |
| Timeline |
| ASM International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AIXTRON SE |
ASM International and AIXTRON SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASM International and AIXTRON SE
The main advantage of trading using opposite ASM International and AIXTRON SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASM International position performs unexpectedly, AIXTRON SE 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 AIXTRON SE will offset losses from the drop in AIXTRON SE'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 |
| AIXTRON SE vs. Ultra Clean Holdings | AIXTRON SE vs. Amtech Systems | AIXTRON SE vs. Veeco Instruments | AIXTRON SE vs. Cohu Inc |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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