Correlation Between ASML Holding and Asm Pacific
Can any of the company-specific risk be diversified away by investing in both ASML Holding and Asm Pacific 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 Asm Pacific 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 Asm Pacific Technology, you can compare the effects of market volatilities on ASML Holding and Asm Pacific 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 Asm Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Asm Pacific.
Diversification Opportunities for ASML Holding and Asm Pacific
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASML and Asm is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Asm Pacific Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asm Pacific Technology 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 Asm Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asm Pacific Technology has no effect on the direction of ASML Holding i.e., ASML Holding and Asm Pacific go up and down completely randomly.
Pair Corralation between ASML Holding and Asm Pacific
Assuming the 90 days horizon ASML Holding NV is expected to generate 0.93 times more return on investment than Asm Pacific. However, ASML Holding NV is 1.08 times less risky than Asm Pacific. It trades about 0.02 of its potential returns per unit of risk. Asm Pacific Technology is currently generating about 0.01 per unit of risk. If you would invest 65,237 in ASML Holding NV on May 28, 2025 and sell it today you would earn a total of 10,560 from holding ASML Holding NV or generate 16.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASML Holding NV vs. Asm Pacific Technology
Performance |
| Timeline |
| ASML Holding NV |
| Asm Pacific Technology |
ASML Holding and Asm Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Asm Pacific
The main advantage of trading using opposite ASML Holding and Asm Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Asm Pacific 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 Pacific will offset losses from the drop in Asm Pacific's long position.| ASML Holding vs. Asm Pacific Technology | ASML Holding vs. BE Semiconductor Industries | ASML Holding vs. BHP Group Limited | ASML Holding vs. Bank of America |
| Asm Pacific vs. AIXTRON SE | Asm Pacific vs. Dye Durham Limited | Asm Pacific vs. SCI Engineered Materials | Asm Pacific vs. Solitron Devices |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |