Correlation Between ASML Holding and Exor NV

Can any of the company-specific risk be diversified away by investing in both ASML Holding and Exor NV 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 Exor NV 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 Exor NV, you can compare the effects of market volatilities on ASML Holding and Exor NV 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 Exor NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Exor NV.

Diversification Opportunities for ASML Holding and Exor NV

0.64

Correlation Coefficient

ASML Holding  Exor NV

Poor diversification

The 3 months correlation between ASML and Exor is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Exor NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exor NV 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 Exor NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exor NV has no effect on the direction of ASML Holding i.e., ASML Holding and Exor NV go up and down completely randomly.

Pair Corralation between ASML Holding and Exor NV

Assuming the 90 days trading horizon ASML Holding NV is expected to generate 1.88 times more return on investment than Exor NV. However, ASML Holding is 1.88 times more volatile than Exor NV. It trades about 0.09 of its potential returns per unit of risk. Exor NV is currently generating about 0.17 per unit of risk. If you would invest  55,936  in ASML Holding NV on April 22, 2025 and sell it today you would earn a total of  7,414  from holding ASML Holding NV or generate 13.25% 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.  Exor NV

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.

Exor NV

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Exor NV are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Exor NV unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ASML Holding and Exor NV

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

The idea behind ASML Holding NV and Exor 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.