Correlation Between ASML Holding and Ease2pay
Can any of the company-specific risk be diversified away by investing in both ASML Holding and Ease2pay 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 Ease2pay 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 Ease2pay NV, you can compare the effects of market volatilities on ASML Holding and Ease2pay 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 Ease2pay. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Ease2pay.
Diversification Opportunities for ASML Holding and Ease2pay
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ASML and Ease2pay is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Ease2pay NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ease2pay 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 Ease2pay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ease2pay NV has no effect on the direction of ASML Holding i.e., ASML Holding and Ease2pay go up and down completely randomly.
Pair Corralation between ASML Holding and Ease2pay
Assuming the 90 days trading horizon ASML Holding NV is expected to generate 0.47 times more return on investment than Ease2pay. However, ASML Holding NV is 2.12 times less risky than Ease2pay. It trades about 0.02 of its potential returns per unit of risk. Ease2pay NV is currently generating about -0.03 per unit of risk. If you would invest 55,768 in ASML Holding NV on August 27, 2024 and sell it today you would earn a total of 8,442 from holding ASML Holding NV or generate 15.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
ASML Holding NV vs. Ease2pay NV
Performance |
| Timeline |
| ASML Holding NV |
| Ease2pay NV |
ASML Holding and Ease2pay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Ease2pay
The main advantage of trading using opposite ASML Holding and Ease2pay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Ease2pay 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 Ease2pay will offset losses from the drop in Ease2pay'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 |
| Ease2pay vs. Ctac NV | Ease2pay vs. Kendrion NV | Ease2pay vs. NV Nederlandsche Apparatenfabriek | Ease2pay vs. VanEck Polkadot ETN |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |