Correlation Between ASML Holding and ProShares Short

Can any of the company-specific risk be diversified away by investing in both ASML Holding and ProShares Short 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 ProShares Short 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 ProShares Short 20, you can compare the effects of market volatilities on ASML Holding and ProShares Short 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 ProShares Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and ProShares Short.

Diversification Opportunities for ASML Holding and ProShares Short

-0.03

Correlation Coefficient

ASML Holding  ProShares Short

Good diversification

The 3 months correlation between ASML and ProShares is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and ProShares Short 20 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Short 20 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 ProShares Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Short 20 has no effect on the direction of ASML Holding i.e., ASML Holding and ProShares Short go up and down completely randomly.

Pair Corralation between ASML Holding and ProShares Short

Given the investment horizon of 90 days ASML Holding NV is expected to generate 2.77 times more return on investment than ProShares Short. However, ASML Holding is 2.77 times more volatile than ProShares Short 20. It trades about 0.01 of its potential returns per unit of risk. ProShares Short 20 is currently generating about -0.03 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 Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ASML Holding NV  vs.  ProShares Short 20

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.

ProShares Short 20

Risk-Adjusted Performance

Weakest

Over the last 90 days ProShares Short 20 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, ProShares Short is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ASML Holding and ProShares Short

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

The idea behind ASML Holding NV and ProShares Short 20 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.