Correlation Between ASML Holding and Ratch Group
Can any of the company-specific risk be diversified away by investing in both ASML Holding and Ratch Group 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 Ratch Group 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 Ratch Group Public, you can compare the effects of market volatilities on ASML Holding and Ratch Group 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 Ratch Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Ratch Group.
Diversification Opportunities for ASML Holding and Ratch Group
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ASML and Ratch is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Ratch Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratch Group Public 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 Ratch Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratch Group Public has no effect on the direction of ASML Holding i.e., ASML Holding and Ratch Group go up and down completely randomly.
Pair Corralation between ASML Holding and Ratch Group
Given the investment horizon of 90 days ASML Holding NV is expected to generate 1.89 times more return on investment than Ratch Group. However, ASML Holding is 1.89 times more volatile than Ratch Group Public. It trades about 0.22 of its potential returns per unit of risk. Ratch Group Public is currently generating about 0.19 per unit of risk. If you would invest 103,014 in ASML Holding NV on November 4, 2025 and sell it today you would earn a total of 39,286 from holding ASML Holding NV or generate 38.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.77% |
| Values | Daily Returns |
ASML Holding NV vs. Ratch Group Public
Performance |
| Timeline |
| ASML Holding NV |
| Ratch Group Public |
ASML Holding and Ratch Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Ratch Group
The main advantage of trading using opposite ASML Holding and Ratch Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Ratch Group 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 Ratch Group will offset losses from the drop in Ratch Group'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 |
| Ratch Group vs. Electricity Generating Public | Ratch Group vs. TTW Public | Ratch Group vs. Sahacogen Public | Ratch Group vs. Global Power Synergy |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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