Correlation Between Astera Labs, and ASML Holding

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

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

Diversification Opportunities for Astera Labs, and ASML Holding

-0.48

Correlation Coefficient

Astera Labs,  ASML Holding

Very good diversification

The 3 months correlation between Astera and ASML is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Astera Labs, Common 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 Astera Labs, 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 Astera Labs, Common 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 Astera Labs, i.e., Astera Labs, and ASML Holding go up and down completely randomly.

Pair Corralation between Astera Labs, and ASML Holding

Given the investment horizon of 90 days Astera Labs, Common is expected to generate 3.05 times more return on investment than ASML Holding. However, Astera Labs, is 3.05 times more volatile than ASML Holding NV. It trades about 0.18 of its potential returns per unit of risk. ASML Holding NV is currently generating about 0.01 per unit of risk. If you would invest  9,754  in Astera Labs, Common on May 27, 2025 and sell it today you would earn a total of  7,661  from holding Astera Labs, Common or generate 78.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Astera Labs, Common  vs.  ASML Holding NV

Astera Labs, Common

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Astera Labs, Common are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Astera Labs, sustained solid returns over the last few months and may actually be approaching a breakup point.

ASML Holding NV

Risk-Adjusted Performance

Weakest

Over the last 90 days ASML Holding NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent primary indicators, ASML Holding is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Astera Labs, and ASML Holding

The main advantage of trading using opposite Astera Labs, and ASML Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astera Labs, 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 Astera Labs, Common 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.