Correlation Between ASML Holding and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both ASML Holding and Uber Technologies 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 Uber Technologies 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 Uber Technologies, you can compare the effects of market volatilities on ASML Holding and Uber Technologies 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 Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Uber Technologies.
Diversification Opportunities for ASML Holding and Uber Technologies
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASML and Uber is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of ASML Holding i.e., ASML Holding and Uber Technologies go up and down completely randomly.
Pair Corralation between ASML Holding and Uber Technologies
Assuming the 90 days trading horizon ASML Holding NV is expected to under-perform the Uber Technologies. In addition to that, ASML Holding is 1.05 times more volatile than Uber Technologies. It trades about -0.02 of its total potential returns per unit of risk. Uber Technologies is currently generating about 0.01 per unit of volatility. If you would invest 6,520 in Uber Technologies on November 5, 2024 and sell it today you would lose (88.00) from holding Uber Technologies or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASML Holding NV vs. Uber Technologies
Performance |
| Timeline |
| ASML Holding NV |
| Uber Technologies |
ASML Holding and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Uber Technologies
The main advantage of trading using opposite ASML Holding and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' 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 |
| Uber Technologies vs. MAGNUM MINING EXP | Uber Technologies vs. Waste Management | Uber Technologies vs. Cardinal Health | Uber Technologies vs. STGEORGE MINING LTD |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |