Correlation Between ASML Holding and C21 Investments

Can any of the company-specific risk be diversified away by investing in both ASML Holding and C21 Investments 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 C21 Investments 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 C21 Investments, you can compare the effects of market volatilities on ASML Holding and C21 Investments 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 C21 Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and C21 Investments.

Diversification Opportunities for ASML Holding and C21 Investments

-0.35

Correlation Coefficient

ASML Holding  C21 Investments

Very good diversification

The 3 months correlation between ASML and C21 is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and C21 Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C21 Investments 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 C21 Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C21 Investments has no effect on the direction of ASML Holding i.e., ASML Holding and C21 Investments go up and down completely randomly.

Pair Corralation between ASML Holding and C21 Investments

Given the investment horizon of 90 days ASML Holding is expected to generate 108.64 times less return on investment than C21 Investments. But when comparing it to its historical volatility, ASML Holding NV is 4.77 times less risky than C21 Investments. It trades about 0.01 of its potential returns per unit of risk. C21 Investments is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  14.00  in C21 Investments on May 26, 2025 and sell it today you would earn a total of  25.00  from holding C21 Investments or generate 178.57% 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.  C21 Investments

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.

C21 Investments

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in C21 Investments are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, C21 Investments reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ASML Holding and C21 Investments

The main advantage of trading using opposite ASML Holding and C21 Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, C21 Investments 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 C21 Investments will offset losses from the drop in C21 Investments' long position.

The idea behind ASML Holding NV and C21 Investments 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.