Correlation Between M Tron and ASML Holding

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

By analyzing existing cross correlation between M tron Industries, and ASML Holding NV, you can compare the effects of market volatilities on M Tron 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 M Tron with a short position of ASML Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of M Tron and ASML Holding.

Diversification Opportunities for M Tron and ASML Holding

-0.74

Correlation Coefficient

M Tron  ASML Holding

Pay attention - limited upside

The 3 months correlation between MPTI and ASML is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding M tron Industries, and ASML Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASML Holding NV and M Tron 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 M tron Industries, 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 NV has no effect on the direction of M Tron i.e., M Tron and ASML Holding go up and down completely randomly.

Pair Corralation between M Tron and ASML Holding

Given the investment horizon of 90 days M tron Industries, is expected to under-perform the ASML Holding. In addition to that, M Tron is 2.03 times more volatile than ASML Holding NV. It trades about -0.08 of its total potential returns per unit of risk. ASML Holding NV is currently generating about 0.06 per unit of volatility. If you would invest  66,611  in ASML Holding NV on April 29, 2025 and sell it today you would earn a total of  4,514  from holding ASML Holding NV or generate 6.78% return on investment over 90 days.

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

M tron Industries,  vs.  ASML Holding NV

M tron Industries,

Risk-Adjusted Performance

Very Weak

Over the last 90 days M tron Industries, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in August 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

ASML Holding NV

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ASML Holding NV are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain primary indicators, ASML Holding may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with M Tron and ASML Holding

The main advantage of trading using opposite M Tron and ASML Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if M Tron 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 M tron Industries, and ASML Holding NV 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .