Correlation Between ASML Holding and RATIONAL UNADR

Can any of the company-specific risk be diversified away by investing in both ASML Holding and RATIONAL UNADR 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 RATIONAL UNADR 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 RATIONAL UNADR 1, you can compare the effects of market volatilities on ASML Holding and RATIONAL UNADR 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 RATIONAL UNADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and RATIONAL UNADR.

Diversification Opportunities for ASML Holding and RATIONAL UNADR

0.34

Correlation Coefficient

ASML Holding  RATIONAL UNADR

Weak diversification

The 3 months correlation between ASML and RATIONAL is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and RATIONAL UNADR 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RATIONAL UNADR 1 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 RATIONAL UNADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RATIONAL UNADR 1 has no effect on the direction of ASML Holding i.e., ASML Holding and RATIONAL UNADR go up and down completely randomly.

Pair Corralation between ASML Holding and RATIONAL UNADR

Given the investment horizon of 90 days ASML Holding NV is expected to generate 1.07 times more return on investment than RATIONAL UNADR. However, ASML Holding is 1.07 times more volatile than RATIONAL UNADR 1. It trades about 0.01 of its potential returns per unit of risk. RATIONAL UNADR 1 is currently generating about -0.09 per unit of risk. If you would invest  75,488  in ASML Holding NV on May 27, 2025 and sell it today you would earn a total of  24.50  from holding ASML Holding NV or generate 0.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

ASML Holding NV  vs.  RATIONAL UNADR 1

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.

RATIONAL UNADR 1

Risk-Adjusted Performance

Weakest

Over the last 90 days RATIONAL UNADR 1 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with ASML Holding and RATIONAL UNADR

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

The idea behind ASML Holding NV and RATIONAL UNADR 1 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.