Correlation Between ASML HOLDING and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both ASML HOLDING and Origin Agritech 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 Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASML HOLDING NY and Origin Agritech, you can compare the effects of market volatilities on ASML HOLDING and Origin Agritech 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 Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML HOLDING and Origin Agritech.
Diversification Opportunities for ASML HOLDING and Origin Agritech
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ASML and Origin is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding ASML HOLDING NY and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech 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 NY are associated (or correlated) with Origin Agritech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Agritech has no effect on the direction of ASML HOLDING i.e., ASML HOLDING and Origin Agritech go up and down completely randomly.
Pair Corralation between ASML HOLDING and Origin Agritech
Assuming the 90 days trading horizon ASML HOLDING NY is expected to generate 0.39 times more return on investment than Origin Agritech. However, ASML HOLDING NY is 2.53 times less risky than Origin Agritech. It trades about 0.03 of its potential returns per unit of risk. Origin Agritech is currently generating about -0.01 per unit of risk. If you would invest 57,731 in ASML HOLDING NY on November 19, 2024 and sell it today you would earn a total of 15,269 from holding ASML HOLDING NY or generate 26.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASML HOLDING NY vs. Origin Agritech
Performance |
| Timeline |
| ASML HOLDING NY |
| Origin Agritech |
ASML HOLDING and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML HOLDING and Origin Agritech
The main advantage of trading using opposite ASML HOLDING and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML HOLDING position performs unexpectedly, Origin Agritech 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 Origin Agritech will offset losses from the drop in Origin Agritech's long position.| ASML HOLDING vs. Penn National Gaming | ASML HOLDING vs. Boyd Gaming | ASML HOLDING vs. Tower One Wireless | ASML HOLDING vs. DFS Furniture PLC |
| Origin Agritech vs. Chunghwa Telecom Co | Origin Agritech vs. MACOM Technology Solutions | Origin Agritech vs. Sunny Optical Technology | Origin Agritech vs. Cogent Communications Holdings |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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