Correlation Between ASML Holding and Array Digital
Can any of the company-specific risk be diversified away by investing in both ASML Holding and Array Digital 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 Array Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASML Holding NV and Array Digital Infrastructure, you can compare the effects of market volatilities on ASML Holding and Array Digital 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 Array Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Array Digital.
Diversification Opportunities for ASML Holding and Array Digital
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ASML and Array is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Array Digital Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Array Digital Infras 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 Array Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Array Digital Infras has no effect on the direction of ASML Holding i.e., ASML Holding and Array Digital go up and down completely randomly.
Pair Corralation between ASML Holding and Array Digital
Given the investment horizon of 90 days ASML Holding NV is expected to generate 1.31 times more return on investment than Array Digital. However, ASML Holding is 1.31 times more volatile than Array Digital Infrastructure. It trades about 0.2 of its potential returns per unit of risk. Array Digital Infrastructure is currently generating about 0.12 per unit of risk. If you would invest 105,923 in ASML Holding NV on October 31, 2025 and sell it today you would earn a total of 36,369 from holding ASML Holding NV or generate 34.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASML Holding NV vs. Array Digital Infrastructure
Performance |
| Timeline |
| ASML Holding NV |
| Array Digital Infras |
ASML Holding and Array Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Array Digital
The main advantage of trading using opposite ASML Holding and Array Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Array Digital 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 Array Digital will offset losses from the drop in Array Digital's long position.| ASML Holding vs. Advanced Micro Devices | ASML Holding vs. Micron Technology | ASML Holding vs. Lam Research Corp | ASML Holding vs. KLA Tencor |
| Array Digital vs. Telephone and Data | Array Digital vs. PLDT Inc | Array Digital vs. Liberty Global PLC | Array Digital vs. Tower One Wireless |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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