Correlation Between ASML Holding and Intermolecular

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Can any of the company-specific risk be diversified away by investing in both ASML Holding and Intermolecular 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 Intermolecular 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 Intermolecular, you can compare the effects of market volatilities on ASML Holding and Intermolecular 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 Intermolecular. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Intermolecular.

Diversification Opportunities for ASML Holding and Intermolecular

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between ASML and Intermolecular is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Intermolecular in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermolecular 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 Intermolecular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermolecular has no effect on the direction of ASML Holding i.e., ASML Holding and Intermolecular go up and down completely randomly.

Pair Corralation between ASML Holding and Intermolecular

If you would invest  94,137  in ASML Holding NV on December 29, 2023 and sell it today you would earn a total of  2,910  from holding ASML Holding NV or generate 3.09% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

ASML Holding NV  vs.  Intermolecular

 Performance 
       Timeline  
ASML Holding NV 

Risk-Adjusted Performance

14 of 100

 
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Good
Compared to the overall equity markets, risk-adjusted returns on investments in ASML Holding NV are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady primary indicators, ASML Holding disclosed solid returns over the last few months and may actually be approaching a breakup point.
Intermolecular 

Risk-Adjusted Performance

0 of 100

 
Low
 
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Very Weak
Over the last 90 days Intermolecular has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, Intermolecular is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

ASML Holding and Intermolecular Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ASML Holding and Intermolecular

The main advantage of trading using opposite ASML Holding and Intermolecular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Intermolecular 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 Intermolecular will offset losses from the drop in Intermolecular's long position.
The idea behind ASML Holding NV and Intermolecular pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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