Correlation Between ASML Holding and Maxeon Solar

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

Diversification Opportunities for ASML Holding and Maxeon Solar

-0.45

Correlation Coefficient

ASML Holding  Maxeon Solar

Very good diversification

The 3 months correlation between ASML and Maxeon is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Maxeon Solar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxeon Solar Technologies 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 Maxeon Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxeon Solar Technologies has no effect on the direction of ASML Holding i.e., ASML Holding and Maxeon Solar go up and down completely randomly.

Pair Corralation between ASML Holding and Maxeon Solar

Given the investment horizon of 90 days ASML Holding is expected to generate 35.67 times less return on investment than Maxeon Solar. But when comparing it to its historical volatility, ASML Holding NV is 3.07 times less risky than Maxeon Solar. It trades about 0.0 of its potential returns per unit of risk. Maxeon Solar Technologies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  371.00  in Maxeon Solar Technologies on May 18, 2025 and sell it today you would earn a total of  28.00  from holding Maxeon Solar Technologies or generate 7.55% return on investment over 90 days.

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

ASML Holding NV  vs.  Maxeon Solar Technologies

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.

Maxeon Solar Technologies

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Maxeon Solar Technologies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Maxeon Solar displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ASML Holding and Maxeon Solar

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

The idea behind ASML Holding NV and Maxeon Solar Technologies 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.