Correlation Between ASML Holding and Roper Technologies
Can any of the company-specific risk be diversified away by investing in both ASML Holding and Roper Technologies 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 Roper Technologies 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 Roper Technologies, you can compare the effects of market volatilities on ASML Holding and Roper Technologies 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 Roper Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Roper Technologies.
Diversification Opportunities for ASML Holding and Roper Technologies
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ASML and Roper is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Roper Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roper Technologies 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 Roper Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roper Technologies has no effect on the direction of ASML Holding i.e., ASML Holding and Roper Technologies go up and down completely randomly.
Pair Corralation between ASML Holding and Roper Technologies
Given the investment horizon of 90 days ASML Holding NV is expected to generate 1.43 times more return on investment than Roper Technologies. However, ASML Holding is 1.43 times more volatile than Roper Technologies. It trades about 0.2 of its potential returns per unit of risk. Roper Technologies is currently generating about -0.17 per unit of risk. If you would invest 103,879 in ASML Holding NV on November 8, 2025 and sell it today you would earn a total of 37,422 from holding ASML Holding NV or generate 36.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASML Holding NV vs. Roper Technologies
Performance |
| Timeline |
| ASML Holding NV |
| Roper Technologies |
ASML Holding and Roper Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Roper Technologies
The main advantage of trading using opposite ASML Holding and Roper Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Roper Technologies 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 Roper Technologies will offset losses from the drop in Roper Technologies' long position.| ASML Holding vs. Advanced Micro Devices | ASML Holding vs. Micron Technology | ASML Holding vs. Lam Research Corp | ASML Holding vs. KLA Tencor |
| Roper Technologies vs. Ametek Inc | Roper Technologies vs. Rockwell Automation | Roper Technologies vs. Ferguson Plc | Roper Technologies vs. WW Grainger |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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