Correlation Between TROPHY GAMES and ASML HOLDING
Can any of the company-specific risk be diversified away by investing in both TROPHY GAMES 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 TROPHY GAMES and ASML HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TROPHY GAMES DEV and ASML HOLDING NY, you can compare the effects of market volatilities on TROPHY GAMES 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 TROPHY GAMES with a short position of ASML HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of TROPHY GAMES and ASML HOLDING.
Diversification Opportunities for TROPHY GAMES and ASML HOLDING
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TROPHY and ASML is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding TROPHY GAMES DEV 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 TROPHY GAMES 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 TROPHY GAMES DEV 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 TROPHY GAMES i.e., TROPHY GAMES and ASML HOLDING go up and down completely randomly.
Pair Corralation between TROPHY GAMES and ASML HOLDING
Assuming the 90 days horizon TROPHY GAMES DEV is expected to generate 1.17 times more return on investment than ASML HOLDING. However, TROPHY GAMES is 1.17 times more volatile than ASML HOLDING NY. It trades about 0.08 of its potential returns per unit of risk. ASML HOLDING NY is currently generating about -0.04 per unit of risk. If you would invest 61.00 in TROPHY GAMES DEV on August 25, 2024 and sell it today you would earn a total of 32.00 from holding TROPHY GAMES DEV or generate 52.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TROPHY GAMES DEV vs. ASML HOLDING NY
Performance |
| Timeline |
| TROPHY GAMES DEV |
| ASML HOLDING NY |
TROPHY GAMES and ASML HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TROPHY GAMES and ASML HOLDING
The main advantage of trading using opposite TROPHY GAMES and ASML HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TROPHY GAMES 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.| TROPHY GAMES vs. Sea Limited | TROPHY GAMES vs. NEXON Co | TROPHY GAMES vs. Take Two Interactive Software | TROPHY GAMES vs. Bilibili |
| ASML HOLDING vs. TROPHY GAMES DEV | ASML HOLDING vs. GigaMedia | ASML HOLDING vs. HOCHSCHILD MINING | ASML HOLDING vs. Games Workshop Group |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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