Correlation Between SCREEN Holdings and ASM International
Can any of the company-specific risk be diversified away by investing in both SCREEN Holdings 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 SCREEN Holdings and ASM International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCREEN Holdings Co and ASM International NV, you can compare the effects of market volatilities on SCREEN Holdings 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 SCREEN Holdings with a short position of ASM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCREEN Holdings and ASM International.
Diversification Opportunities for SCREEN Holdings and ASM International
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SCREEN and ASM is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding SCREEN Holdings Co and ASM International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASM International and SCREEN Holdings 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 SCREEN Holdings Co 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 SCREEN Holdings i.e., SCREEN Holdings and ASM International go up and down completely randomly.
Pair Corralation between SCREEN Holdings and ASM International
If you would invest 7,097 in SCREEN Holdings Co on November 3, 2024 and sell it today you would earn a total of 153.00 from holding SCREEN Holdings Co or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 25.0% |
| Values | Daily Returns |
SCREEN Holdings Co vs. ASM International NV
Performance |
| Timeline |
| SCREEN Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| ASM International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SCREEN Holdings and ASM International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCREEN Holdings and ASM International
The main advantage of trading using opposite SCREEN Holdings and ASM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCREEN Holdings 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.| SCREEN Holdings vs. Asm Pacific Technology | SCREEN Holdings vs. Disco Corp ADR | SCREEN Holdings vs. Tokyo Electron | SCREEN Holdings vs. Lasertec |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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