Correlation Between Commercial Vehicle and ASML HOLDING

Can any of the company-specific risk be diversified away by investing in both Commercial Vehicle and ASML HOLDING 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 Commercial Vehicle and ASML HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Commercial Vehicle Group and ASML HOLDING NY, you can compare the effects of market volatilities on Commercial Vehicle and ASML HOLDING 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 Commercial Vehicle with a short position of ASML HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commercial Vehicle and ASML HOLDING.

Diversification Opportunities for Commercial Vehicle and ASML HOLDING

-0.18

Correlation Coefficient

Commercial Vehicle  ASML HOLDING

Good diversification

The 3 months correlation between Commercial and ASML is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Commercial Vehicle Group and ASML HOLDING NY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASML HOLDING NY and Commercial Vehicle 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 Commercial Vehicle Group are associated (or correlated) with ASML HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASML HOLDING NY has no effect on the direction of Commercial Vehicle i.e., Commercial Vehicle and ASML HOLDING go up and down completely randomly.

Pair Corralation between Commercial Vehicle and ASML HOLDING

Assuming the 90 days trading horizon Commercial Vehicle is expected to generate 12.84 times less return on investment than ASML HOLDING. In addition to that, Commercial Vehicle is 1.82 times more volatile than ASML HOLDING NY. It trades about 0.02 of its total potential returns per unit of risk. ASML HOLDING NY is currently generating about 0.39 per unit of volatility. If you would invest  59,800  in ASML HOLDING NY on July 2, 2025 and sell it today you would earn a total of  21,200  from holding ASML HOLDING NY or generate 35.45% return on investment over 90 days.

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

Commercial Vehicle Group  vs.  ASML HOLDING NY

Commercial Vehicle

Risk-Adjusted Performance

Weak

Over the last 90 days Commercial Vehicle Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Commercial Vehicle is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

ASML HOLDING NY

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in ASML HOLDING NY are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, ASML HOLDING reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Commercial Vehicle and ASML HOLDING

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

The idea behind Commercial Vehicle Group and ASML HOLDING NY 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.