Correlation Between ASML Holding and Ctac NV
Can any of the company-specific risk be diversified away by investing in both ASML Holding and Ctac NV 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 Ctac NV 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 Ctac NV, you can compare the effects of market volatilities on ASML Holding and Ctac NV 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 Ctac NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Ctac NV.
Diversification Opportunities for ASML Holding and Ctac NV
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ASML and Ctac is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Ctac NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ctac NV 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 Ctac NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ctac NV has no effect on the direction of ASML Holding i.e., ASML Holding and Ctac NV go up and down completely randomly.
Pair Corralation between ASML Holding and Ctac NV
Assuming the 90 days trading horizon ASML Holding NV is expected to generate 1.18 times more return on investment than Ctac NV. However, ASML Holding is 1.18 times more volatile than Ctac NV. It trades about 0.24 of its potential returns per unit of risk. Ctac NV is currently generating about -0.04 per unit of risk. If you would invest 65,019 in ASML Holding NV on November 27, 2024 and sell it today you would earn a total of 6,331 from holding ASML Holding NV or generate 9.74% 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. Ctac NV
Performance |
| Timeline |
| ASML Holding NV |
| Ctac NV |
ASML Holding and Ctac NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Ctac NV
The main advantage of trading using opposite ASML Holding and Ctac NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Ctac NV 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 Ctac NV will offset losses from the drop in Ctac NV's long position.| ASML Holding vs. Adyen NV | ASML Holding vs. Prosus NV | ASML Holding vs. Koninklijke Philips NV | ASML Holding vs. Koninklijke Ahold Delhaize |
| Ctac NV vs. NV Nederlandsche Apparatenfabriek | Ctac NV vs. Brunel International NV | Ctac NV vs. Kendrion NV |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |