Correlation Between ASML Holding and Eurocastle Investment
Can any of the company-specific risk be diversified away by investing in both ASML Holding and Eurocastle Investment 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 Eurocastle Investment 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 Eurocastle Investment, you can compare the effects of market volatilities on ASML Holding and Eurocastle Investment 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 Eurocastle Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Eurocastle Investment.
Diversification Opportunities for ASML Holding and Eurocastle Investment
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ASML and Eurocastle is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Eurocastle Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurocastle Investment 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 Eurocastle Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurocastle Investment has no effect on the direction of ASML Holding i.e., ASML Holding and Eurocastle Investment go up and down completely randomly.
Pair Corralation between ASML Holding and Eurocastle Investment
Assuming the 90 days trading horizon ASML Holding NV is expected to generate 0.47 times more return on investment than Eurocastle Investment. However, ASML Holding NV is 2.13 times less risky than Eurocastle Investment. It trades about 0.12 of its potential returns per unit of risk. Eurocastle Investment is currently generating about -0.44 per unit of risk. If you would invest 62,120 in ASML Holding NV on September 1, 2024 and sell it today you would earn a total of 3,720 from holding ASML Holding NV or generate 5.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 40.91% |
| Values | Daily Returns |
ASML Holding NV vs. Eurocastle Investment
Performance |
| Timeline |
| ASML Holding NV |
| Eurocastle Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ASML Holding and Eurocastle Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Eurocastle Investment
The main advantage of trading using opposite ASML Holding and Eurocastle Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Eurocastle Investment 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 Eurocastle Investment will offset losses from the drop in Eurocastle Investment'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 |
| Eurocastle Investment vs. Tetragon Financial Group | Eurocastle Investment vs. Ctac NV | Eurocastle Investment vs. iShares SP 500 | Eurocastle Investment vs. Hydratec Industries 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets |