Correlation Between ASML Holding and Artificial Intelligence

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

Diversification Opportunities for ASML Holding and Artificial Intelligence

0.14

Correlation Coefficient

ASML Holding  Artificial Intelligence

Average diversification

The 3 months correlation between ASML and Artificial is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Artificial Intelligence Techno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artificial Intelligence 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 Artificial Intelligence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artificial Intelligence has no effect on the direction of ASML Holding i.e., ASML Holding and Artificial Intelligence go up and down completely randomly.

Pair Corralation between ASML Holding and Artificial Intelligence

Given the investment horizon of 90 days ASML Holding NV is expected to generate 0.3 times more return on investment than Artificial Intelligence. However, ASML Holding NV is 3.35 times less risky than Artificial Intelligence. It trades about -0.01 of its potential returns per unit of risk. Artificial Intelligence Technology is currently generating about -0.07 per unit of risk. If you would invest  75,644  in ASML Holding NV on May 15, 2025 and sell it today you would lose (1,465) from holding ASML Holding NV or give up 1.94% of portfolio value over 90 days.

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

ASML Holding NV  vs.  Artificial Intelligence Techno

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.

Artificial Intelligence

Risk-Adjusted Performance

Weakest

Over the last 90 days Artificial Intelligence Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with ASML Holding and Artificial Intelligence

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

The idea behind ASML Holding NV and Artificial Intelligence Technology 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.