Correlation Between ASM International and Veeco Instruments
Can any of the company-specific risk be diversified away by investing in both ASM International and Veeco Instruments 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 Veeco Instruments 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 Veeco Instruments, you can compare the effects of market volatilities on ASM International and Veeco Instruments 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 Veeco Instruments. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASM International and Veeco Instruments.
Diversification Opportunities for ASM International and Veeco Instruments
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASM and Veeco is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ASM International NV and Veeco Instruments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veeco Instruments 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 Veeco Instruments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veeco Instruments has no effect on the direction of ASM International i.e., ASM International and Veeco Instruments go up and down completely randomly.
Pair Corralation between ASM International and Veeco Instruments
If you would invest 35,002 in ASM International NV on August 24, 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 | 4.35% |
| Values | Daily Returns |
ASM International NV vs. Veeco Instruments
Performance |
| Timeline |
| ASM International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Veeco Instruments |
ASM International and Veeco Instruments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASM International and Veeco Instruments
The main advantage of trading using opposite ASM International and Veeco Instruments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASM International position performs unexpectedly, Veeco Instruments 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 Veeco Instruments will offset losses from the drop in Veeco Instruments' long position.| ASM International vs. Disco Corp ADR | ASM International vs. Asm Pacific Technology | ASM International vs. Sumco Corp ADR | ASM International vs. Lasertec |
| Veeco Instruments vs. Ultra Clean Holdings | Veeco Instruments vs. Cohu Inc | Veeco Instruments vs. Ichor Holdings | Veeco Instruments vs. Entegris |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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