Correlation Between ASML Holding and Fidelity Flex

Can any of the company-specific risk be diversified away by investing in both ASML Holding and Fidelity Flex 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 Fidelity Flex 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 Fidelity Flex 500, you can compare the effects of market volatilities on ASML Holding and Fidelity Flex 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 Fidelity Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Fidelity Flex.

Diversification Opportunities for ASML Holding and Fidelity Flex

-0.22

Correlation Coefficient

ASML Holding  Fidelity Flex

Very good diversification

The 3 months correlation between ASML and Fidelity is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Fidelity Flex 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Flex 500 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 Fidelity Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Flex 500 has no effect on the direction of ASML Holding i.e., ASML Holding and Fidelity Flex go up and down completely randomly.

Pair Corralation between ASML Holding and Fidelity Flex

Given the investment horizon of 90 days ASML Holding is expected to generate 7.78 times less return on investment than Fidelity Flex. In addition to that, ASML Holding is 3.23 times more volatile than Fidelity Flex 500. It trades about 0.01 of its total potential returns per unit of risk. Fidelity Flex 500 is currently generating about 0.24 per unit of volatility. If you would invest  2,523  in Fidelity Flex 500 on May 25, 2025 and sell it today you would earn a total of  239.00  from holding Fidelity Flex 500 or generate 9.47% 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.  Fidelity Flex 500

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.

Fidelity Flex 500

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Flex 500 are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Fidelity Flex may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with ASML Holding and Fidelity Flex

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

The idea behind ASML Holding NV and Fidelity Flex 500 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.