Correlation Between ASML Holding and ASM International
Can any of the company-specific risk be diversified away by investing in both ASML Holding and ASM International 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 ASM International 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 ASM International NV, you can compare the effects of market volatilities on ASML Holding and ASM International 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 ASM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and ASM International.
Diversification Opportunities for ASML Holding and ASM International
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between ASML and ASM is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and ASM International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASM International 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 ASM International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASM International has no effect on the direction of ASML Holding i.e., ASML Holding and ASM International go up and down completely randomly.
Pair Corralation between ASML Holding and ASM International
If you would invest 35,002 in ASM International NV on October 22, 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 | 0.81% |
| Values | Daily Returns |
ASML Holding NV vs. ASM International NV
Performance |
| Timeline |
| ASML Holding NV |
| ASM International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ASML Holding and ASM International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and ASM International
The main advantage of trading using opposite ASML Holding and ASM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, ASM International 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 ASM International will offset losses from the drop in ASM International's long position.| ASML Holding vs. Sumco Corp ADR | ASML Holding vs. Disco Corp ADR | ASML Holding vs. Tokyo Electron | ASML Holding vs. AIXTRON SE |
| ASM International vs. Disco Corp ADR | ASM International vs. Asm Pacific Technology | ASM International vs. Sumco Corp ADR | ASM International vs. Lasertec |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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