Correlation Between ASML Holding and Universal Display
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By analyzing existing cross correlation between ASML Holding NV and Universal Display, you can compare the effects of market volatilities on ASML Holding and Universal Display 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 Universal Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Universal Display.
Diversification Opportunities for ASML Holding and Universal Display
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ASML and Universal is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Universal Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Display 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 Universal Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Display has no effect on the direction of ASML Holding i.e., ASML Holding and Universal Display go up and down completely randomly.
Pair Corralation between ASML Holding and Universal Display
Assuming the 90 days trading horizon ASML Holding NV is expected to generate 1.24 times more return on investment than Universal Display. However, ASML Holding is 1.24 times more volatile than Universal Display. It trades about 0.1 of its potential returns per unit of risk. Universal Display is currently generating about -0.19 per unit of risk. If you would invest 62,750 in ASML Holding NV on September 2, 2024 and sell it today you would earn a total of 3,080 from holding ASML Holding NV or generate 4.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASML Holding NV vs. Universal Display
Performance |
| Timeline |
| ASML Holding NV |
| Universal Display |
ASML Holding and Universal Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Universal Display
The main advantage of trading using opposite ASML Holding and Universal Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Universal Display 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 Universal Display will offset losses from the drop in Universal Display's long position.| ASML Holding vs. COSMOSTEEL HLDGS | ASML Holding vs. RELIANCE STEEL AL | ASML Holding vs. MITSUBISHI STEEL MFG | ASML Holding vs. THAI BEVERAGE |
| Universal Display vs. Superior Plus Corp | Universal Display vs. NMI Holdings | Universal Display vs. Origin Agritech | Universal Display vs. SIVERS SEMICONDUCTORS AB |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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