Correlation Between SCREEN Holdings and ASM International

Can any of the company-specific risk be diversified away by investing in both SCREEN Holdings 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 SCREEN Holdings and ASM International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SCREEN Holdings Co and ASM International NV, you can compare the effects of market volatilities on SCREEN Holdings 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 SCREEN Holdings with a short position of ASM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCREEN Holdings and ASM International.

Diversification Opportunities for SCREEN Holdings and ASM International

0.0

Correlation Coefficient

SCREEN Holdings  ASM International

Pay attention - limited upside

The 3 months correlation between SCREEN and ASM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SCREEN Holdings Co and ASM International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASM International and SCREEN Holdings 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 SCREEN Holdings Co 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 SCREEN Holdings i.e., SCREEN Holdings and ASM International go up and down completely randomly.

Pair Corralation between SCREEN Holdings and ASM International

If you would invest  7,097  in SCREEN Holdings Co on December 27, 2024 and sell it today you would lose (98.00) from holding SCREEN Holdings Co or give up 1.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SCREEN Holdings Co  vs.  ASM International NV

SCREEN Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SCREEN Holdings Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, SCREEN Holdings may actually be approaching a critical reversion point that can send shares even higher in April 2025.

ASM International

Risk-Adjusted Performance

Very Weak

Over the last 90 days ASM International NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, ASM International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SCREEN Holdings and ASM International

The main advantage of trading using opposite SCREEN Holdings and ASM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCREEN Holdings 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.

The idea behind SCREEN Holdings Co and ASM International 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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.