Correlation Between Brooks Automation and ASML Holding

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

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

Diversification Opportunities for Brooks Automation and ASML Holding

0.0

Correlation Coefficient

Brooks Automation  ASML Holding

Pay attention - limited upside

The 3 months correlation between Brooks and ASML is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Brooks Automation 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 Brooks Automation 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 Brooks Automation 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 Brooks Automation i.e., Brooks Automation and ASML Holding go up and down completely randomly.

Pair Corralation between Brooks Automation and ASML Holding

If you would invest  90,345  in ASML Holding NV on February 13, 2024 and sell it today you would earn a total of  4,655  from holding ASML Holding NV or generate 5.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Brooks Automation  vs.  ASML Holding NV

Brooks Automation

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Brooks Automation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward-looking signals, Brooks Automation is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

ASML Holding NV

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ASML Holding NV are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, ASML Holding may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Brooks Automation and ASML Holding

The main advantage of trading using opposite Brooks Automation and ASML Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brooks Automation 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.

The idea behind Brooks Automation and ASML Holding 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.