Correlation Between ASML Holding and Randstad

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

Diversification Opportunities for ASML Holding and Randstad

0.64

Correlation Coefficient

ASML Holding  Randstad

Poor diversification

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

Pair Corralation between ASML Holding and Randstad

Assuming the 90 days trading horizon ASML Holding is expected to generate 2.89 times less return on investment than Randstad. In addition to that, ASML Holding is 1.52 times more volatile than Randstad NV. It trades about 0.04 of its total potential returns per unit of risk. Randstad NV is currently generating about 0.17 per unit of volatility. If you would invest  3,575  in Randstad NV on April 23, 2025 and sell it today you would earn a total of  614.00  from holding Randstad NV or generate 17.17% 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.  Randstad NV

ASML Holding NV

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ASML Holding NV are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, ASML Holding is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Randstad NV

Risk-Adjusted Performance

Good

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

Pair Trading with ASML Holding and Randstad

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

The idea behind ASML Holding NV and Randstad 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.