Correlation Between ASML Holding and Superior Plus
Can any of the company-specific risk be diversified away by investing in both ASML Holding and Superior Plus 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 Superior Plus 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 Superior Plus Corp, you can compare the effects of market volatilities on ASML Holding and Superior Plus 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 Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Superior Plus.
Diversification Opportunities for ASML Holding and Superior Plus
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ASML and Superior is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp 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 Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of ASML Holding i.e., ASML Holding and Superior Plus go up and down completely randomly.
Pair Corralation between ASML Holding and Superior Plus
Assuming the 90 days trading horizon ASML Holding NV is expected to generate 1.11 times more return on investment than Superior Plus. However, ASML Holding is 1.11 times more volatile than Superior Plus Corp. It trades about 0.02 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.02 per unit of risk. If you would invest 57,832 in ASML Holding NV on September 3, 2024 and sell it today you would earn a total of 7,358 from holding ASML Holding NV or generate 12.72% 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. Superior Plus Corp
Performance |
| Timeline |
| ASML Holding NV |
| Superior Plus Corp |
ASML Holding and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Superior Plus
The main advantage of trading using opposite ASML Holding and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| ASML Holding vs. Sanyo Chemical Industries | ASML Holding vs. SEKISUI CHEMICAL | ASML Holding vs. TIANDE CHEMICAL | ASML Holding vs. WillScot Mobile Mini |
| Superior Plus vs. Collins Foods Limited | Superior Plus vs. Thai Beverage Public | Superior Plus vs. ADRIATIC METALS LS 013355 | Superior Plus vs. Lifeway Foods |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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