Correlation Between Fastned BV and ASM International
Can any of the company-specific risk be diversified away by investing in both Fastned BV 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 Fastned BV and ASM International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fastned BV and ASM International NV, you can compare the effects of market volatilities on Fastned BV 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 Fastned BV with a short position of ASM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fastned BV and ASM International.
Diversification Opportunities for Fastned BV and ASM International
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fastned and ASM is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Fastned BV and ASM International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASM International and Fastned BV 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 Fastned BV 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 Fastned BV i.e., Fastned BV and ASM International go up and down completely randomly.
Pair Corralation between Fastned BV and ASM International
Assuming the 90 days trading horizon Fastned BV is expected to under-perform the ASM International. But the stock apears to be less risky and, when comparing its historical volatility, Fastned BV is 1.33 times less risky than ASM International. The stock trades about -0.2 of its potential returns per unit of risk. The ASM International NV is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 56,560 in ASM International NV on November 4, 2024 and sell it today you would earn a total of 140.00 from holding ASM International NV or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fastned BV vs. ASM International NV
Performance |
| Timeline |
| Fastned BV |
| ASM International |
Fastned BV and ASM International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fastned BV and ASM International
The main advantage of trading using opposite Fastned BV and ASM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fastned BV 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.| Fastned BV vs. Alfen Beheer BV | Fastned BV vs. BE Semiconductor Industries | Fastned BV vs. Just Eat Takeaway | Fastned BV vs. PostNL NV |
| ASM International vs. BE Semiconductor Industries | ASM International vs. ASML Holding NV | ASM International vs. NN Group NV | ASM International vs. Aalberts Industries NV |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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