Correlation Between Shell PLC and ASML Holding
Can any of the company-specific risk be diversified away by investing in both Shell PLC and ASML Holding 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 Shell PLC and ASML Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shell PLC and ASML Holding NV, you can compare the effects of market volatilities on Shell PLC and ASML Holding 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 Shell PLC with a short position of ASML Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shell PLC and ASML Holding.
Diversification Opportunities for Shell PLC and ASML Holding
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shell and ASML is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Shell PLC and ASML Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASML Holding NV and Shell PLC 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 Shell PLC are associated (or correlated) with ASML Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASML Holding NV has no effect on the direction of Shell PLC i.e., Shell PLC and ASML Holding go up and down completely randomly.
Pair Corralation between Shell PLC and ASML Holding
Assuming the 90 days trading horizon Shell PLC is expected to under-perform the ASML Holding. But the stock apears to be less risky and, when comparing its historical volatility, Shell PLC is 2.23 times less risky than ASML Holding. The stock trades about -0.04 of its potential returns per unit of risk. The ASML Holding NV is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 90,740 in ASML Holding NV on October 28, 2025 and sell it today you would earn a total of 27,060 from holding ASML Holding NV or generate 29.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shell PLC vs. ASML Holding NV
Performance |
| Timeline |
| Shell PLC |
| ASML Holding NV |
Shell PLC and ASML Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shell PLC and ASML Holding
The main advantage of trading using opposite Shell PLC and ASML Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shell PLC position performs unexpectedly, ASML Holding 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 ASML Holding will offset losses from the drop in ASML Holding's long position.| Shell PLC vs. Koninklijke Ahold Delhaize | Shell PLC vs. Unilever PLC | Shell PLC vs. ING Groep NV | Shell PLC vs. ASML Holding NV |
| ASML Holding vs. ASM International NV | ASML Holding vs. BE Semiconductor Industries | ASML Holding vs. Adyen NV | ASML Holding vs. NV Nederlandsche Apparatenfabriek |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |