Correlation Between ASM International and Asm Pacific

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

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

Diversification Opportunities for ASM International and Asm Pacific

-0.88

Correlation Coefficient

ASM International  Asm Pacific

Pay attention - limited upside

The 3 months correlation between ASM and Asm is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding ASM International NV and Asm Pacific Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asm Pacific Technology and ASM International 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 International NV are associated (or correlated) with Asm Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asm Pacific Technology has no effect on the direction of ASM International i.e., ASM International and Asm Pacific go up and down completely randomly.

Pair Corralation between ASM International and Asm Pacific

Assuming the 90 days horizon ASM International NV is expected to under-perform the Asm Pacific. But the pink sheet apears to be less risky and, when comparing its historical volatility, ASM International NV is 1.22 times less risky than Asm Pacific. The pink sheet trades about -0.11 of its potential returns per unit of risk. The Asm Pacific Technology is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  2,077  in Asm Pacific Technology on June 15, 2025 and sell it today you would earn a total of  664.00  from holding Asm Pacific Technology or generate 31.97% return on investment over 90 days.

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

ASM International NV  vs.  Asm Pacific Technology

ASM International

Risk-Adjusted Performance

Weakest

Over the last 90 days ASM International NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in October 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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 13 (%) 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.

Pair Trading with ASM International and Asm Pacific

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

The idea behind ASM International NV and Asm Pacific Technology 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.