Correlation Between ASML Holding and OceanPact Servios
Can any of the company-specific risk be diversified away by investing in both ASML Holding and OceanPact Servios 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 OceanPact Servios 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 OceanPact Servios Martimos, you can compare the effects of market volatilities on ASML Holding and OceanPact Servios 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 OceanPact Servios. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and OceanPact Servios.
Diversification Opportunities for ASML Holding and OceanPact Servios
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASML and OceanPact is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and OceanPact Servios Martimos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OceanPact Servios 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 OceanPact Servios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OceanPact Servios has no effect on the direction of ASML Holding i.e., ASML Holding and OceanPact Servios go up and down completely randomly.
Pair Corralation between ASML Holding and OceanPact Servios
Assuming the 90 days trading horizon ASML Holding NV is expected to generate 1.31 times more return on investment than OceanPact Servios. However, ASML Holding is 1.31 times more volatile than OceanPact Servios Martimos. It trades about 0.11 of its potential returns per unit of risk. OceanPact Servios Martimos is currently generating about -0.22 per unit of risk. If you would invest 7,966 in ASML Holding NV on October 20, 2024 and sell it today you would earn a total of 434.00 from holding ASML Holding NV or generate 5.45% 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. OceanPact Servios Martimos
Performance |
| Timeline |
| ASML Holding NV |
| OceanPact Servios |
ASML Holding and OceanPact Servios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and OceanPact Servios
The main advantage of trading using opposite ASML Holding and OceanPact Servios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, OceanPact Servios 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 OceanPact Servios will offset losses from the drop in OceanPact Servios' long position.| ASML Holding vs. G2D Investments | ASML Holding vs. Hormel Foods | ASML Holding vs. salesforce inc | ASML Holding vs. Mangels Industrial SA |
| OceanPact Servios vs. Hidrovias do Brasil | OceanPact Servios vs. Enjoei SA | OceanPact Servios vs. MPM Corpreos SA | OceanPact Servios vs. Intelbras SA |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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