Correlation Between Azenta and ASM International

Can any of the company-specific risk be diversified away by investing in both Azenta and ASM International 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 Azenta and ASM International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Azenta Inc and ASM International NV, you can compare the effects of market volatilities on Azenta and ASM International 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 Azenta with a short position of ASM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azenta and ASM International.

Diversification Opportunities for Azenta and ASM International

-0.83

Correlation Coefficient

Azenta  ASM International

Pay attention - limited upside

The 3 months correlation between Azenta and ASM is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Azenta Inc and ASM International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASM International and Azenta 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 Azenta Inc are associated (or correlated) with ASM International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASM International has no effect on the direction of Azenta i.e., Azenta and ASM International go up and down completely randomly.

Pair Corralation between Azenta and ASM International

If you would invest  35,002  in ASM International NV on January 26, 2024 and sell it today you would earn a total of  0.00  from holding ASM International NV or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	4.76%
Values	Daily Returns

Azenta Inc  vs.  ASM International NV

Azenta Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Azenta Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

ASM International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ASM International NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, ASM International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Azenta and ASM International

The main advantage of trading using opposite Azenta and ASM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azenta position performs unexpectedly, ASM International 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 International will offset losses from the drop in ASM International's long position.

The idea behind Azenta Inc and ASM International NV 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.

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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.