Correlation Between ASML Holding and TG Venture
Can any of the company-specific risk be diversified away by investing in both ASML Holding and TG Venture 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 TG Venture 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 TG Venture Acquisition, you can compare the effects of market volatilities on ASML Holding and TG Venture 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 TG Venture. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and TG Venture.
Diversification Opportunities for ASML Holding and TG Venture
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASML and TGVCW is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and TG Venture Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TG Venture Acquisition 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 TG Venture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TG Venture Acquisition has no effect on the direction of ASML Holding i.e., ASML Holding and TG Venture go up and down completely randomly.
Pair Corralation between ASML Holding and TG Venture
If you would invest 71,026 in ASML Holding NV on October 20, 2024 and sell it today you would earn a total of 4,607 from holding ASML Holding NV or generate 6.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
ASML Holding NV vs. TG Venture Acquisition
Performance |
| Timeline |
| ASML Holding NV |
| TG Venture Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ASML Holding and TG Venture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and TG Venture
The main advantage of trading using opposite ASML Holding and TG Venture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, TG Venture 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 TG Venture will offset losses from the drop in TG Venture's long position.| ASML Holding vs. Applied Materials | ASML Holding vs. KLA Tencor | ASML Holding vs. Axcelis Technologies | ASML Holding vs. Teradyne |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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