Correlation Between ASML Holding and IShares France
Can any of the company-specific risk be diversified away by investing in both ASML Holding and IShares France 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 IShares France 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 iShares France Govt, you can compare the effects of market volatilities on ASML Holding and IShares France 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 IShares France. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and IShares France.
Diversification Opportunities for ASML Holding and IShares France
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ASML and IShares is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and iShares France Govt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares France Govt 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 IShares France. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares France Govt has no effect on the direction of ASML Holding i.e., ASML Holding and IShares France go up and down completely randomly.
Pair Corralation between ASML Holding and IShares France
Assuming the 90 days trading horizon ASML Holding NV is expected to under-perform the IShares France. In addition to that, ASML Holding is 8.89 times more volatile than iShares France Govt. It trades about -0.05 of its total potential returns per unit of risk. iShares France Govt is currently generating about 0.05 per unit of volatility. If you would invest 12,821 in iShares France Govt on September 3, 2024 and sell it today you would earn a total of 362.00 from holding iShares France Govt or generate 2.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASML Holding NV vs. iShares France Govt
Performance |
| Timeline |
| ASML Holding NV |
| iShares France Govt |
ASML Holding and IShares France Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and IShares France
The main advantage of trading using opposite ASML Holding and IShares France positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, IShares France 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 IShares France will offset losses from the drop in IShares France'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 |
| IShares France vs. Vanguard SP 500 | IShares France vs. SPDR Dow Jones | IShares France vs. iShares Core MSCI | IShares France vs. iShares SP 500 |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |