Correlation Between COFCO Joycome and ASML HOLDING
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and ASML HOLDING 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 COFCO Joycome and ASML HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COFCO Joycome Foods and ASML HOLDING NY, you can compare the effects of market volatilities on COFCO Joycome and ASML HOLDING 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 COFCO Joycome with a short position of ASML HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and ASML HOLDING.
Diversification Opportunities for COFCO Joycome and ASML HOLDING
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between COFCO and ASML is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and ASML HOLDING NY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASML HOLDING NY and COFCO Joycome 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 COFCO Joycome Foods are associated (or correlated) with ASML HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASML HOLDING NY has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and ASML HOLDING go up and down completely randomly.
Pair Corralation between COFCO Joycome and ASML HOLDING
Assuming the 90 days horizon COFCO Joycome Foods is expected to generate 1.32 times more return on investment than ASML HOLDING. However, COFCO Joycome is 1.32 times more volatile than ASML HOLDING NY. It trades about 0.1 of its potential returns per unit of risk. ASML HOLDING NY is currently generating about -0.02 per unit of risk. If you would invest 14.00 in COFCO Joycome Foods on September 12, 2024 and sell it today you would earn a total of 3.00 from holding COFCO Joycome Foods or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COFCO Joycome Foods vs. ASML HOLDING NY
Performance |
| Timeline |
| COFCO Joycome Foods |
| ASML HOLDING NY |
COFCO Joycome and ASML HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and ASML HOLDING
The main advantage of trading using opposite COFCO Joycome and ASML HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, ASML HOLDING 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 ASML HOLDING will offset losses from the drop in ASML HOLDING's long position.| COFCO Joycome vs. Hormel Foods | COFCO Joycome vs. Superior Plus Corp | COFCO Joycome vs. SIVERS SEMICONDUCTORS AB | COFCO Joycome vs. NorAm Drilling AS |
| ASML HOLDING vs. Science Applications International | ASML HOLDING vs. Cass Information Systems | ASML HOLDING vs. SALESFORCE INC CDR | ASML HOLDING vs. TERADATA |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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