Correlation Between ASML Holding and SCREEN Holdings
Can any of the company-specific risk be diversified away by investing in both ASML Holding and SCREEN Holdings 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 SCREEN Holdings 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 SCREEN Holdings Co, you can compare the effects of market volatilities on ASML Holding and SCREEN Holdings 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 SCREEN Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and SCREEN Holdings.
Diversification Opportunities for ASML Holding and SCREEN Holdings
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ASML and SCREEN is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and SCREEN Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCREEN Holdings 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 SCREEN Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCREEN Holdings has no effect on the direction of ASML Holding i.e., ASML Holding and SCREEN Holdings go up and down completely randomly.
Pair Corralation between ASML Holding and SCREEN Holdings
Given the investment horizon of 90 days ASML Holding is expected to generate 13.67 times less return on investment than SCREEN Holdings. But when comparing it to its historical volatility, ASML Holding NV is 2.42 times less risky than SCREEN Holdings. It trades about 0.02 of its potential returns per unit of risk. SCREEN Holdings Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,995 in SCREEN Holdings Co on August 27, 2024 and sell it today you would earn a total of 1,973 from holding SCREEN Holdings Co or generate 49.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 22.42% |
| Values | Daily Returns |
ASML Holding NV vs. SCREEN Holdings Co
Performance |
| Timeline |
| ASML Holding NV |
| SCREEN Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ASML Holding and SCREEN Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and SCREEN Holdings
The main advantage of trading using opposite ASML Holding and SCREEN Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, SCREEN Holdings 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 SCREEN Holdings will offset losses from the drop in SCREEN Holdings' long position.| ASML Holding vs. Applied Materials | ASML Holding vs. KLA Tencor | ASML Holding vs. Axcelis Technologies | ASML Holding vs. Teradyne |
| SCREEN Holdings vs. ASML Holding NV | SCREEN Holdings vs. Applied Materials | SCREEN Holdings vs. Lam Research Corp | SCREEN Holdings vs. KLA Tencor |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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