Correlation Between ASML Holding and SCOR SE
Can any of the company-specific risk be diversified away by investing in both ASML Holding and SCOR SE 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 SCOR SE 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 SCOR SE, you can compare the effects of market volatilities on ASML Holding and SCOR SE 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 SCOR SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and SCOR SE.
Diversification Opportunities for ASML Holding and SCOR SE
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ASML and SCOR is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and SCOR SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR SE 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 SCOR SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR SE has no effect on the direction of ASML Holding i.e., ASML Holding and SCOR SE go up and down completely randomly.
Pair Corralation between ASML Holding and SCOR SE
Assuming the 90 days trading horizon ASML Holding is expected to generate 1.19 times less return on investment than SCOR SE. In addition to that, ASML Holding is 1.02 times more volatile than SCOR SE. It trades about 0.02 of its total potential returns per unit of risk. SCOR SE is currently generating about 0.03 per unit of volatility. If you would invest 2,033 in SCOR SE on November 5, 2024 and sell it today you would earn a total of 455.00 from holding SCOR SE or generate 22.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASML Holding NV vs. SCOR SE
Performance |
| Timeline |
| ASML Holding NV |
| SCOR SE |
ASML Holding and SCOR SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and SCOR SE
The main advantage of trading using opposite ASML Holding and SCOR SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, SCOR SE 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 SCOR SE will offset losses from the drop in SCOR SE's long position.| ASML Holding vs. Playa Hotels Resorts | ASML Holding vs. De Grey Mining | ASML Holding vs. COVIVIO HOTELS INH | ASML Holding vs. GALENA MINING LTD |
| SCOR SE vs. SIDETRADE EO 1 | SCOR SE vs. FAST RETAIL ADR | SCOR SE vs. Renesas Electronics | SCOR SE vs. KIMBALL ELECTRONICS |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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