Correlation Between ASML Holding and Ichor Holdings
Can any of the company-specific risk be diversified away by investing in both ASML Holding and Ichor Holdings 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 Ichor Holdings 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 Ichor Holdings, you can compare the effects of market volatilities on ASML Holding and Ichor Holdings 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 Ichor Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Ichor Holdings.
Diversification Opportunities for ASML Holding and Ichor Holdings
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ASML and Ichor is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Ichor Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ichor Holdings 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 Ichor Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ichor Holdings has no effect on the direction of ASML Holding i.e., ASML Holding and Ichor Holdings go up and down completely randomly.
Pair Corralation between ASML Holding and Ichor Holdings
Given the investment horizon of 90 days ASML Holding NV is expected to under-perform the Ichor Holdings. In addition to that, ASML Holding is 1.14 times more volatile than Ichor Holdings. It trades about -0.16 of its total potential returns per unit of risk. Ichor Holdings is currently generating about 0.01 per unit of volatility. If you would invest 3,763 in Ichor Holdings on January 25, 2024 and sell it today you would lose (9.00) from holding Ichor Holdings or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASML Holding NV vs. Ichor Holdings
Performance |
| Timeline |
| ASML Holding NV |
| Ichor Holdings |
ASML Holding and Ichor Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Ichor Holdings
The main advantage of trading using opposite ASML Holding and Ichor Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Ichor Holdings 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 Ichor Holdings will offset losses from the drop in Ichor Holdings' long position.| ASML Holding vs. KLA Tencor | ASML Holding vs. Teradyne | ASML Holding vs. Applied Materials | ASML Holding vs. Aehr Test Systems |
| Ichor Holdings vs. KLA Tencor | Ichor Holdings vs. ASML Holding NV | Ichor Holdings vs. Axcelis Technologies | Ichor Holdings vs. Teradyne |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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