Correlation Between ASML Holding and ASICS

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

Diversification Opportunities for ASML Holding and ASICS

0.57

Correlation Coefficient

ASML Holding  ASICS

Very weak diversification

The 3 months correlation between ASML and ASICS is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and ASICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASICS 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 ASICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASICS has no effect on the direction of ASML Holding i.e., ASML Holding and ASICS go up and down completely randomly.

Pair Corralation between ASML Holding and ASICS

Given the investment horizon of 90 days ASML Holding is expected to generate 3.01 times less return on investment than ASICS. But when comparing it to its historical volatility, ASML Holding NV is 1.44 times less risky than ASICS. It trades about 0.05 of its potential returns per unit of risk. ASICS is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  2,050  in ASICS on April 27, 2025 and sell it today you would earn a total of  403.00  from holding ASICS or generate 19.66% return on investment over 90 days.

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

ASML Holding NV  vs.  ASICS

ASML Holding NV

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ASML Holding NV are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain primary indicators, ASML Holding may actually be approaching a critical reversion point that can send shares even higher in August 2025.

ASICS

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ASICS are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal fundamental indicators, ASICS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ASML Holding and ASICS

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

The idea behind ASML Holding NV and ASICS 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.