Correlation Between ASML Holding and PT Bank

Can any of the company-specific risk be diversified away by investing in both ASML Holding and PT Bank 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 PT Bank 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 PT Bank Maybank, you can compare the effects of market volatilities on ASML Holding and PT Bank 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 PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and PT Bank.

Diversification Opportunities for ASML Holding and PT Bank

-0.22

Correlation Coefficient

ASML Holding  PT Bank

Very good diversification

The 3 months correlation between ASML and BOZA is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and PT Bank Maybank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Maybank 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 PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Maybank has no effect on the direction of ASML Holding i.e., ASML Holding and PT Bank go up and down completely randomly.

Pair Corralation between ASML Holding and PT Bank

Assuming the 90 days trading horizon ASML Holding NV is expected to under-perform the PT Bank. But the stock apears to be less risky and, when comparing its historical volatility, ASML Holding NV is 2.22 times less risky than PT Bank. The stock trades about -0.02 of its potential returns per unit of risk. The PT Bank Maybank is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1.00  in PT Bank Maybank on May 20, 2025 and sell it today you would earn a total of  0.00  from holding PT Bank Maybank or generate 0.0% return on investment over 90 days.

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

ASML Holding NV  vs.  PT Bank Maybank

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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

PT Bank Maybank

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PT Bank Maybank are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, PT Bank is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ASML Holding and PT Bank

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

The idea behind ASML Holding NV and PT Bank Maybank 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.