Correlation Between GREENX METALS and ASML HOLDING

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

By analyzing existing cross correlation between GREENX METALS LTD and ASML HOLDING NY, you can compare the effects of market volatilities on GREENX METALS 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 GREENX METALS with a short position of ASML HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and ASML HOLDING.

Diversification Opportunities for GREENX METALS and ASML HOLDING

-0.38

Correlation Coefficient

GREENX METALS  ASML HOLDING

Very good diversification

The 3 months correlation between GREENX and ASML is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and ASML HOLDING NY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASML HOLDING NY and GREENX METALS 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 GREENX METALS LTD 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 NY has no effect on the direction of GREENX METALS i.e., GREENX METALS and ASML HOLDING go up and down completely randomly.

Pair Corralation between GREENX METALS and ASML HOLDING

Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the ASML HOLDING. In addition to that, GREENX METALS is 1.59 times more volatile than ASML HOLDING NY. It trades about -0.03 of its total potential returns per unit of risk. ASML HOLDING NY is currently generating about -0.02 per unit of volatility. If you would invest  66,632  in ASML HOLDING NY on May 18, 2025 and sell it today you would lose (3,232) from holding ASML HOLDING NY or give up 4.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.48%
Values	Daily Returns

GREENX METALS LTD  vs.  ASML HOLDING NY

GREENX METALS LTD

Risk-Adjusted Performance

Weakest

Over the last 90 days GREENX METALS LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's primary indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

ASML HOLDING NY

Risk-Adjusted Performance

Weakest

Over the last 90 days ASML HOLDING NY has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, ASML HOLDING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with GREENX METALS and ASML HOLDING

The main advantage of trading using opposite GREENX METALS and ASML HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS 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 GREENX METALS LTD and ASML HOLDING NY 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.