Correlation Between ASML Holding and Diodes Incorporated
Can any of the company-specific risk be diversified away by investing in both ASML Holding and Diodes Incorporated 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 Diodes Incorporated 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 Diodes Incorporated, you can compare the effects of market volatilities on ASML Holding and Diodes Incorporated 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 Diodes Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Diodes Incorporated.
Diversification Opportunities for ASML Holding and Diodes Incorporated
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ASML and Diodes is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Diodes Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diodes Incorporated 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 Diodes Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diodes Incorporated has no effect on the direction of ASML Holding i.e., ASML Holding and Diodes Incorporated go up and down completely randomly.
Pair Corralation between ASML Holding and Diodes Incorporated
Given the investment horizon of 90 days ASML Holding NV is expected to generate 1.47 times more return on investment than Diodes Incorporated. However, ASML Holding is 1.47 times more volatile than Diodes Incorporated. It trades about 0.19 of its potential returns per unit of risk. Diodes Incorporated is currently generating about 0.12 per unit of risk. If you would invest 111,144 in ASML Holding NV on October 10, 2025 and sell it today you would earn a total of 11,703 from holding ASML Holding NV or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASML Holding NV vs. Diodes Incorporated
Performance |
| Timeline |
| ASML Holding NV |
| Diodes Incorporated |
ASML Holding and Diodes Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Diodes Incorporated
The main advantage of trading using opposite ASML Holding and Diodes Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Diodes Incorporated 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 Diodes Incorporated will offset losses from the drop in Diodes Incorporated'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 |
| Diodes Incorporated vs. Power Integrations | Diodes Incorporated vs. Axcelis Technologies | Diodes Incorporated vs. Acm Research | Diodes Incorporated vs. Vishay Intertechnology |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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