Correlation Between Asm Pacific and AIXTRON SE

Can any of the company-specific risk be diversified away by investing in both Asm Pacific and AIXTRON SE 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 Asm Pacific and AIXTRON SE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Asm Pacific Technology and AIXTRON SE, you can compare the effects of market volatilities on Asm Pacific and AIXTRON SE 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 Asm Pacific with a short position of AIXTRON SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asm Pacific and AIXTRON SE.

Diversification Opportunities for Asm Pacific and AIXTRON SE

0.68

Correlation Coefficient

Asm Pacific  AIXTRON SE

Poor diversification

The 3 months correlation between Asm and AIXTRON is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Asm Pacific Technology and AIXTRON SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIXTRON SE and Asm Pacific 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 Asm Pacific Technology are associated (or correlated) with AIXTRON SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIXTRON SE has no effect on the direction of Asm Pacific i.e., Asm Pacific and AIXTRON SE go up and down completely randomly.

Pair Corralation between Asm Pacific and AIXTRON SE

Assuming the 90 days horizon Asm Pacific Technology is expected to generate 0.71 times more return on investment than AIXTRON SE. However, Asm Pacific Technology is 1.41 times less risky than AIXTRON SE. It trades about 0.16 of its potential returns per unit of risk. AIXTRON SE is currently generating about 0.08 per unit of risk. If you would invest  2,060  in Asm Pacific Technology on May 3, 2025 and sell it today you would earn a total of  479.00  from holding Asm Pacific Technology or generate 23.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Asm Pacific Technology  vs.  AIXTRON SE

Asm Pacific Technology

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Asm Pacific Technology are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Asm Pacific showed solid returns over the last few months and may actually be approaching a breakup point.

AIXTRON SE

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AIXTRON SE are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, AIXTRON SE reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Asm Pacific and AIXTRON SE

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

The idea behind Asm Pacific Technology and AIXTRON SE 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.

Check out your portfolio center.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.