Correlation Between ASM International and First Graphene

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

Diversification Opportunities for ASM International and First Graphene

0.0

Correlation Coefficient

ASM International  First Graphene

Pay attention - limited upside

The 3 months correlation between ASM and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ASM International NV and First Graphene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Graphene 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 First Graphene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Graphene has no effect on the direction of ASM International i.e., ASM International and First Graphene go up and down completely randomly.

Pair Corralation between ASM International and First Graphene

If you would invest  2.80  in First Graphene on May 20, 2025 and sell it today you would lose (0.40) from holding First Graphene or give up 14.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ASM International NV  vs.  First Graphene

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 fairly strong forward indicators, ASM International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

First Graphene

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in First Graphene are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, First Graphene reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ASM International and First Graphene

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

The idea behind ASM International NV and First Graphene 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.

Check out your portfolio center.

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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.