Correlation Between ASML Holding and Accsys Technologies

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

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

Diversification Opportunities for ASML Holding and Accsys Technologies

0.67

Correlation Coefficient

ASML Holding  Accsys Technologies

Poor diversification

The 3 months correlation between ASML and Accsys is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Accsys Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accsys Technologies and ASML Holding 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 ASML Holding NV are associated (or correlated) with Accsys Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accsys Technologies has no effect on the direction of ASML Holding i.e., ASML Holding and Accsys Technologies go up and down completely randomly.

Pair Corralation between ASML Holding and Accsys Technologies

Assuming the 90 days trading horizon ASML Holding is expected to generate 2.15 times less return on investment than Accsys Technologies. But when comparing it to its historical volatility, ASML Holding NV is 1.37 times less risky than Accsys Technologies. It trades about 0.09 of its potential returns per unit of risk. Accsys Technologies is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  54.00  in Accsys Technologies on April 21, 2025 and sell it today you would earn a total of  17.00  from holding Accsys Technologies or generate 31.48% return on investment over 90 days.

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

ASML Holding NV  vs.  Accsys Technologies

ASML Holding NV

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ASML Holding NV are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, ASML Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

Accsys Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Accsys Technologies are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Accsys Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ASML Holding and Accsys Technologies

The main advantage of trading using opposite ASML Holding and Accsys Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Accsys Technologies 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 Accsys Technologies will offset losses from the drop in Accsys Technologies' long position.

The idea behind ASML Holding NV and Accsys Technologies 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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.