Correlation Between Soitec SA and Asm Pacific

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

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

Diversification Opportunities for Soitec SA and Asm Pacific

0.07

Correlation Coefficient

Soitec SA  Asm Pacific

Significant diversification

The 3 months correlation between Soitec and Asm is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Soitec SA 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 Soitec SA 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 Soitec SA 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 Soitec SA i.e., Soitec SA and Asm Pacific go up and down completely randomly.

Pair Corralation between Soitec SA and Asm Pacific

Assuming the 90 days horizon Soitec SA is expected to under-perform the Asm Pacific. In addition to that, Soitec SA is 1.19 times more volatile than Asm Pacific Technology. It trades about -0.06 of its total potential returns per unit of risk. Asm Pacific Technology is currently generating about 0.19 per unit of volatility. If you would invest  2,294  in Asm Pacific Technology on July 22, 2025 and sell it today you would earn a total of  1,022  from holding Asm Pacific Technology or generate 44.55% return on investment over 90 days.

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

Soitec SA  vs.  Asm Pacific Technology

Soitec SA

Risk-Adjusted Performance

Weakest

Over the last 90 days Soitec SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain nearly stable which may send shares a bit higher in November 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 14 (%) 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 Soitec SA and Asm Pacific

The main advantage of trading using opposite Soitec SA and Asm Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soitec SA 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 Soitec SA 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.

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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 Stocks Directory module to find actively traded stocks across global markets.