Correlation Between PICKN PAY and ASML Holding

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

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

Diversification Opportunities for PICKN PAY and ASML Holding

-0.27

Correlation Coefficient

PICKN PAY  ASML Holding

Very good diversification

The 3 months correlation between PICKN and ASML is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES 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 PICKN PAY 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 PICKN PAY STORES 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 PICKN PAY i.e., PICKN PAY and ASML Holding go up and down completely randomly.

Pair Corralation between PICKN PAY and ASML Holding

Assuming the 90 days trading horizon PICKN PAY STORES is expected to generate 1.05 times more return on investment than ASML Holding. However, PICKN PAY is 1.05 times more volatile than ASML Holding NV. It trades about 0.02 of its potential returns per unit of risk. ASML Holding NV is currently generating about -0.01 per unit of risk. If you would invest  128.00  in PICKN PAY STORES on May 27, 2025 and sell it today you would earn a total of  2.00  from holding PICKN PAY STORES or generate 1.56% return on investment over 90 days.

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

PICKN PAY STORES  vs.  ASML Holding NV

PICKN PAY STORES

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PICKN PAY STORES are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, PICKN PAY is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

ASML Holding NV

Risk-Adjusted Performance

Weakest

Over the last 90 days ASML Holding NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, ASML Holding is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with PICKN PAY and ASML Holding

The main advantage of trading using opposite PICKN PAY and ASML Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY 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 PICKN PAY STORES 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.