Correlation Between ASML Holding and Advanced Micro
Can any of the company-specific risk be diversified away by investing in both ASML Holding and Advanced Micro 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 Advanced Micro 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 Advanced Micro Devices, you can compare the effects of market volatilities on ASML Holding and Advanced Micro 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 Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Advanced Micro.
Diversification Opportunities for ASML Holding and Advanced Micro
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ASML and Advanced is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Advanced Micro Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Micro Devices 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 Advanced Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Micro Devices has no effect on the direction of ASML Holding i.e., ASML Holding and Advanced Micro go up and down completely randomly.
Pair Corralation between ASML Holding and Advanced Micro
Given the investment horizon of 90 days ASML Holding is expected to generate 2.75 times less return on investment than Advanced Micro. But when comparing it to its historical volatility, ASML Holding NV is 2.15 times less risky than Advanced Micro. It trades about 0.09 of its potential returns per unit of risk. Advanced Micro Devices is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 16,127 in Advanced Micro Devices on September 25, 2025 and sell it today you would earn a total of 5,363 from holding Advanced Micro Devices or generate 33.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASML Holding NV vs. Advanced Micro Devices
Performance |
| Timeline |
| ASML Holding NV |
| Advanced Micro Devices |
ASML Holding and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Advanced Micro
The main advantage of trading using opposite ASML Holding and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Advanced Micro 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 Advanced Micro will offset losses from the drop in Advanced Micro's long position.| ASML Holding vs. Advanced Micro Devices | ASML Holding vs. Micron Technology | ASML Holding vs. Lam Research Corp | ASML Holding vs. KLA Tencor |
| Advanced Micro vs. ASML Holding NV | Advanced Micro vs. Micron Technology | Advanced Micro vs. Palantir Technologies | Advanced Micro vs. Lam Research Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |