Correlation Between ASML Holding and Peninsula Energy
Can any of the company-specific risk be diversified away by investing in both ASML Holding and Peninsula Energy 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 Peninsula Energy 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 Peninsula Energy Limited, you can compare the effects of market volatilities on ASML Holding and Peninsula Energy 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 Peninsula Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Peninsula Energy.
Diversification Opportunities for ASML Holding and Peninsula Energy
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASML and Peninsula is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Peninsula Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peninsula Energy 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 Peninsula Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peninsula Energy has no effect on the direction of ASML Holding i.e., ASML Holding and Peninsula Energy go up and down completely randomly.
Pair Corralation between ASML Holding and Peninsula Energy
Assuming the 90 days trading horizon ASML Holding NV is expected to generate 0.55 times more return on investment than Peninsula Energy. However, ASML Holding NV is 1.81 times less risky than Peninsula Energy. It trades about 0.04 of its potential returns per unit of risk. Peninsula Energy Limited is currently generating about 0.01 per unit of risk. If you would invest 67,710 in ASML Holding NV on October 31, 2024 and sell it today you would earn a total of 1,130 from holding ASML Holding NV or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASML Holding NV vs. Peninsula Energy Limited
Performance |
| Timeline |
| ASML Holding NV |
| Peninsula Energy |
ASML Holding and Peninsula Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Peninsula Energy
The main advantage of trading using opposite ASML Holding and Peninsula Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Peninsula Energy 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 Peninsula Energy will offset losses from the drop in Peninsula Energy's long position.| ASML Holding vs. Diamyd Medical AB | ASML Holding vs. PLAYSTUDIOS A DL 0001 | ASML Holding vs. British American Tobacco | ASML Holding vs. Scandinavian Tobacco Group |
| Peninsula Energy vs. Carsales | Peninsula Energy vs. CEOTRONICS | Peninsula Energy vs. UNITED UTILITIES GR | Peninsula Energy vs. CeoTronics AG |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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