Correlation Between ASML Holding and Micro Mechanics
Can any of the company-specific risk be diversified away by investing in both ASML Holding and Micro Mechanics 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 Micro Mechanics 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 Micro Mechanics, you can compare the effects of market volatilities on ASML Holding and Micro Mechanics 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 Micro Mechanics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Micro Mechanics.
Diversification Opportunities for ASML Holding and Micro Mechanics
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ASML and Micro is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Micro Mechanics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micro Mechanics 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 Micro Mechanics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micro Mechanics has no effect on the direction of ASML Holding i.e., ASML Holding and Micro Mechanics go up and down completely randomly.
Pair Corralation between ASML Holding and Micro Mechanics
If you would invest 131.00 in Micro Mechanics on January 15, 2025 and sell it today you would earn a total of 0.00 from holding Micro Mechanics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
ASML Holding NV vs. Micro Mechanics
Performance |
| Timeline |
| ASML Holding NV |
| Micro Mechanics |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
ASML Holding and Micro Mechanics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Micro Mechanics
The main advantage of trading using opposite ASML Holding and Micro Mechanics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Micro Mechanics 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 Micro Mechanics will offset losses from the drop in Micro Mechanics' long position.| ASML Holding vs. Sumco Corp ADR | ASML Holding vs. Disco Corp ADR | ASML Holding vs. Tokyo Electron | ASML Holding vs. AIXTRON SE |
| Micro Mechanics vs. Applied Materials | Micro Mechanics vs. KLA Tencor | Micro Mechanics vs. ASML Holding NV | Micro Mechanics vs. Axcelis Technologies |
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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