Correlation Between ASML Holding and CTP NV
Can any of the company-specific risk be diversified away by investing in both ASML Holding and CTP 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 CTP 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 CTP NV, you can compare the effects of market volatilities on ASML Holding and CTP 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 CTP NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and CTP NV.
Diversification Opportunities for ASML Holding and CTP NV
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ASML and CTP is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and CTP NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTP 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 CTP NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTP NV has no effect on the direction of ASML Holding i.e., ASML Holding and CTP NV go up and down completely randomly.
Pair Corralation between ASML Holding and CTP NV
Assuming the 90 days trading horizon ASML Holding is expected to generate 1.13 times less return on investment than CTP NV. In addition to that, ASML Holding is 1.98 times more volatile than CTP NV. It trades about 0.07 of its total potential returns per unit of risk. CTP NV is currently generating about 0.16 per unit of volatility. If you would invest 1,488 in CTP NV on November 29, 2024 and sell it today you would earn a total of 134.00 from holding CTP NV or generate 9.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
ASML Holding NV vs. CTP NV
Performance |
| Timeline |
| ASML Holding NV |
| CTP NV |
ASML Holding and CTP NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and CTP NV
The main advantage of trading using opposite ASML Holding and CTP NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, CTP 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 CTP NV will offset losses from the drop in CTP 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 |
| CTP NV vs. Warehouses de Pauw | CTP NV vs. VGP NV | CTP NV vs. Eurocommercial Properties NV | CTP NV vs. Koninklijke Heijmans 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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