Correlation Between ASML Holding and IMPAX ENVIRONMTL

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

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

Diversification Opportunities for ASML Holding and IMPAX ENVIRONMTL

-0.6

Correlation Coefficient

ASML Holding  IMPAX ENVIRONMTL

Excellent diversification

The 3 months correlation between ASML and IMPAX is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and IMPAX ENVIRONMTL MKTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMPAX ENVIRONMTL MKTS and ASML Holding 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 ASML Holding NV are associated (or correlated) with IMPAX ENVIRONMTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMPAX ENVIRONMTL MKTS has no effect on the direction of ASML Holding i.e., ASML Holding and IMPAX ENVIRONMTL go up and down completely randomly.

Pair Corralation between ASML Holding and IMPAX ENVIRONMTL

Assuming the 90 days trading horizon ASML Holding NV is expected to under-perform the IMPAX ENVIRONMTL. In addition to that, ASML Holding is 2.17 times more volatile than IMPAX ENVIRONMTL MKTS. It trades about -0.01 of its total potential returns per unit of risk. IMPAX ENVIRONMTL MKTS is currently generating about 0.05 per unit of volatility. If you would invest  434.00  in IMPAX ENVIRONMTL MKTS on May 21, 2025 and sell it today you would earn a total of  12.00  from holding IMPAX ENVIRONMTL MKTS or generate 2.76% return on investment over 90 days.

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

ASML Holding NV  vs.  IMPAX ENVIRONMTL MKTS

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 nearly stable primary indicators, ASML Holding is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

IMPAX ENVIRONMTL MKTS

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in IMPAX ENVIRONMTL MKTS are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, IMPAX ENVIRONMTL is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ASML Holding and IMPAX ENVIRONMTL

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

The idea behind ASML Holding NV and IMPAX ENVIRONMTL MKTS 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.