Correlation Between TKH Group and ASM International
Can any of the company-specific risk be diversified away by investing in both TKH Group 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 TKH Group and ASM International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TKH Group NV and ASM International NV, you can compare the effects of market volatilities on TKH Group 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 TKH Group with a short position of ASM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of TKH Group and ASM International.
Diversification Opportunities for TKH Group and ASM International
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TKH and ASM is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding TKH Group NV and ASM International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASM International and TKH Group 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 TKH Group NV 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 TKH Group i.e., TKH Group and ASM International go up and down completely randomly.
Pair Corralation between TKH Group and ASM International
Assuming the 90 days trading horizon TKH Group NV is expected to generate 0.74 times more return on investment than ASM International. However, TKH Group NV is 1.35 times less risky than ASM International. It trades about 0.33 of its potential returns per unit of risk. ASM International NV is currently generating about 0.21 per unit of risk. If you would invest 3,390 in TKH Group NV on July 23, 2025 and sell it today you would earn a total of 368.00 from holding TKH Group NV or generate 10.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
TKH Group NV vs. ASM International NV
Performance |
Timeline |
TKH Group NV |
ASM International |
TKH Group and ASM International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TKH Group and ASM International
The main advantage of trading using opposite TKH Group and ASM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TKH Group 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.TKH Group vs. NV Nederlandsche Apparatenfabriek | TKH Group vs. TomTom NV | TKH Group vs. Ctac NV | TKH Group vs. CM NV |
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Check out your portfolio center.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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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