Correlation Between ASML Holding and Logility Supply
Can any of the company-specific risk be diversified away by investing in both ASML Holding and Logility Supply 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 Logility Supply 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 Logility Supply Chain, you can compare the effects of market volatilities on ASML Holding and Logility Supply 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 Logility Supply. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Logility Supply.
Diversification Opportunities for ASML Holding and Logility Supply
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASML and Logility is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Logility Supply Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logility Supply Chain 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 Logility Supply. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logility Supply Chain has no effect on the direction of ASML Holding i.e., ASML Holding and Logility Supply go up and down completely randomly.
Pair Corralation between ASML Holding and Logility Supply
Given the investment horizon of 90 days ASML Holding NV is expected to generate 0.65 times more return on investment than Logility Supply. However, ASML Holding NV is 1.55 times less risky than Logility Supply. It trades about 0.14 of its potential returns per unit of risk. Logility Supply Chain is currently generating about -0.07 per unit of risk. If you would invest 67,131 in ASML Holding NV on October 11, 2024 and sell it today you would earn a total of 7,267 from holding ASML Holding NV or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASML Holding NV vs. Logility Supply Chain
Performance |
| Timeline |
| ASML Holding NV |
| Logility Supply Chain |
ASML Holding and Logility Supply Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Logility Supply
The main advantage of trading using opposite ASML Holding and Logility Supply positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Logility Supply 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 Logility Supply will offset losses from the drop in Logility Supply's long position.| ASML Holding vs. Applied Materials | ASML Holding vs. KLA Tencor | ASML Holding vs. Axcelis Technologies | ASML Holding vs. Teradyne |
| Logility Supply vs. Palomar Holdings | Logility Supply vs. Pekin Life Insurance | Logility Supply vs. Sun Life Financial | Logility Supply vs. Molina Healthcare |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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