Correlation Between ASM International and OCI NV

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

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

Diversification Opportunities for ASM International and OCI NV

-0.03

Correlation Coefficient

ASM International  OCI NV

Good diversification

The 3 months correlation between ASM and OCI is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding ASM International NV and OCI NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCI NV and ASM International 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 ASM International NV are associated (or correlated) with OCI NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCI NV has no effect on the direction of ASM International i.e., ASM International and OCI NV go up and down completely randomly.

Pair Corralation between ASM International and OCI NV

Assuming the 90 days trading horizon ASM International NV is expected to under-perform the OCI NV. But the stock apears to be less risky and, when comparing its historical volatility, ASM International NV is 1.08 times less risky than OCI NV. The stock trades about -0.36 of its potential returns per unit of risk. The OCI NV is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  420.00  in OCI NV on May 21, 2025 and sell it today you would earn a total of  84.00  from holding OCI NV or generate 20.0% return on investment over 90 days.

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

ASM International NV  vs.  OCI NV

ASM International

Risk-Adjusted Performance

Weakest

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 uncertain performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

OCI NV

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in OCI NV are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, OCI NV unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ASM International and OCI NV

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

The idea behind ASM International NV and OCI 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 Stocks Directory module to find actively traded stocks across global markets.