Correlation Between ASML HOLDING and PULSION Medical
Can any of the company-specific risk be diversified away by investing in both ASML HOLDING and PULSION Medical 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 PULSION Medical 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 PULSION Medical Systems, you can compare the effects of market volatilities on ASML HOLDING and PULSION Medical 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 PULSION Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML HOLDING and PULSION Medical.
Diversification Opportunities for ASML HOLDING and PULSION Medical
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between ASML and PULSION is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding ASML HOLDING NY and PULSION Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PULSION Medical Systems 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 PULSION Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PULSION Medical Systems has no effect on the direction of ASML HOLDING i.e., ASML HOLDING and PULSION Medical go up and down completely randomly.
Pair Corralation between ASML HOLDING and PULSION Medical
Assuming the 90 days trading horizon ASML HOLDING NY is expected to generate 2.43 times more return on investment than PULSION Medical. However, ASML HOLDING is 2.43 times more volatile than PULSION Medical Systems. It trades about 0.12 of its potential returns per unit of risk. PULSION Medical Systems is currently generating about -0.14 per unit of risk. If you would invest 67,400 in ASML HOLDING NY on October 9, 2024 and sell it today you would earn a total of 1,600 from holding ASML HOLDING NY or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASML HOLDING NY vs. PULSION Medical Systems
Performance |
| Timeline |
| ASML HOLDING NY |
| PULSION Medical Systems |
ASML HOLDING and PULSION Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML HOLDING and PULSION Medical
The main advantage of trading using opposite ASML HOLDING and PULSION Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML HOLDING position performs unexpectedly, PULSION Medical 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 PULSION Medical will offset losses from the drop in PULSION Medical's long position.| ASML HOLDING vs. VITEC SOFTWARE GROUP | ASML HOLDING vs. Guidewire Software | ASML HOLDING vs. CPU SOFTWAREHOUSE | ASML HOLDING vs. Magic Software Enterprises |
| PULSION Medical vs. Goodyear Tire Rubber | PULSION Medical vs. The Yokohama Rubber | PULSION Medical vs. NEWELL RUBBERMAID | PULSION Medical vs. PT Wintermar Offshore |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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