Correlation Between Sumco Corp and ASM International
Can any of the company-specific risk be diversified away by investing in both Sumco Corp 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 Sumco Corp and ASM International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sumco Corp ADR and ASM International NV, you can compare the effects of market volatilities on Sumco Corp 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 Sumco Corp with a short position of ASM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumco Corp and ASM International.
Diversification Opportunities for Sumco Corp and ASM International
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sumco and ASM is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sumco Corp ADR and ASM International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASM International and Sumco Corp 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 Sumco Corp ADR 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 Sumco Corp i.e., Sumco Corp and ASM International go up and down completely randomly.
Pair Corralation between Sumco Corp and ASM International
If you would invest 35,002 in ASM International NV on August 27, 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 | Very Weak |
| Accuracy | 0.53% |
| Values | Daily Returns |
Sumco Corp ADR vs. ASM International NV
Performance |
| Timeline |
| Sumco Corp ADR |
| ASM International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sumco Corp and ASM International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sumco Corp and ASM International
The main advantage of trading using opposite Sumco Corp and ASM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumco Corp 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.| Sumco Corp vs. ASML Holding NV | Sumco Corp vs. Applied Materials | Sumco Corp vs. Lam Research Corp | Sumco Corp vs. KLA Tencor |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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