Correlation Between ASML Holding and TRAVELERS
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By analyzing existing cross correlation between ASML Holding NV and TRAVELERS INS GROUP, you can compare the effects of market volatilities on ASML Holding and TRAVELERS 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 TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and TRAVELERS.
Diversification Opportunities for ASML Holding and TRAVELERS
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ASML and TRAVELERS is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and TRAVELERS INS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVELERS INS GROUP 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 TRAVELERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVELERS INS GROUP has no effect on the direction of ASML Holding i.e., ASML Holding and TRAVELERS go up and down completely randomly.
Pair Corralation between ASML Holding and TRAVELERS
Given the investment horizon of 90 days ASML Holding NV is expected to generate 4.36 times more return on investment than TRAVELERS. However, ASML Holding is 4.36 times more volatile than TRAVELERS INS GROUP. It trades about 0.11 of its potential returns per unit of risk. TRAVELERS INS GROUP is currently generating about 0.11 per unit of risk. If you would invest 70,042 in ASML Holding NV on November 3, 2024 and sell it today you would earn a total of 4,019 from holding ASML Holding NV or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASML Holding NV vs. TRAVELERS INS GROUP
Performance |
| Timeline |
| ASML Holding NV |
| TRAVELERS INS GROUP |
ASML Holding and TRAVELERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and TRAVELERS
The main advantage of trading using opposite ASML Holding and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, TRAVELERS 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 TRAVELERS will offset losses from the drop in TRAVELERS's long position.| ASML Holding vs. Applied Materials | ASML Holding vs. KLA Tencor | ASML Holding vs. Axcelis Technologies | ASML Holding vs. Teradyne |
| TRAVELERS vs. Merit Medical Systems | TRAVELERS vs. Alvotech | TRAVELERS vs. Viemed Healthcare | TRAVELERS vs. Xtant Medical Holdings |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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