Correlation Between NYSE Composite and ASM International
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and ASM International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and ASM International NV, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of ASM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and ASM International.
Diversification Opportunities for NYSE Composite and ASM International
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NYSE and ASM is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and ASM International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASM International and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and ASM International go up and down completely randomly.
Pair Corralation between NYSE Composite and ASM International
If you would invest 1,954,967 in NYSE Composite on August 28, 2024 and sell it today you would earn a total of 67,069 from holding NYSE Composite or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
NYSE Composite vs. ASM International NV
Performance |
| Timeline |
NYSE Composite and ASM International Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
ASM International NV
Pair trading matchups for ASM International
Pair Trading with NYSE Composite and ASM International
The main advantage of trading using opposite NYSE Composite and ASM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Hooker Furniture | NYSE Composite vs. Hudson Pacific Properties | NYSE Composite vs. Canlan Ice Sports | NYSE Composite vs. Boston Properties |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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