Correlation Between HAL Trust and ASM International
Can any of the company-specific risk be diversified away by investing in both HAL Trust and ASM International 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 HAL Trust and ASM International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HAL Trust and ASM International NV, you can compare the effects of market volatilities on HAL Trust and ASM International 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 HAL Trust with a short position of ASM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAL Trust and ASM International.
Diversification Opportunities for HAL Trust and ASM International
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HAL and ASM is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding HAL Trust and ASM International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASM International and HAL Trust 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 HAL Trust are associated (or correlated) with ASM International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASM International has no effect on the direction of HAL Trust i.e., HAL Trust and ASM International go up and down completely randomly.
Pair Corralation between HAL Trust and ASM International
Assuming the 90 days trading horizon HAL Trust is expected to generate 0.32 times more return on investment than ASM International. However, HAL Trust is 3.13 times less risky than ASM International. It trades about 0.2 of its potential returns per unit of risk. ASM International NV is currently generating about 0.04 per unit of risk. If you would invest 11,305 in HAL Trust on April 26, 2025 and sell it today you would earn a total of 1,175 from holding HAL Trust or generate 10.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
HAL Trust vs. ASM International NV
Performance |
Timeline |
HAL Trust |
ASM International |
HAL Trust and ASM International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HAL Trust and ASM International
The main advantage of trading using opposite HAL Trust and ASM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAL Trust position performs unexpectedly, ASM International 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 International will offset losses from the drop in ASM International's long position.HAL Trust vs. Ackermans Van Haaren | HAL Trust vs. Koninklijke Vopak NV | HAL Trust vs. Groep Brussel Lambert | HAL Trust vs. Sofina Socit Anonyme |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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