Correlation Between Boston Beer and ASML HOLDING
Can any of the company-specific risk be diversified away by investing in both Boston Beer and ASML HOLDING 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 Boston Beer and ASML HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boston Beer and ASML HOLDING NY, you can compare the effects of market volatilities on Boston Beer and ASML HOLDING 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 Boston Beer with a short position of ASML HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Beer and ASML HOLDING.
Diversification Opportunities for Boston Beer and ASML HOLDING
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boston and ASML is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding The Boston Beer and ASML HOLDING NY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASML HOLDING NY and Boston Beer 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 The Boston Beer are associated (or correlated) with ASML HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASML HOLDING NY has no effect on the direction of Boston Beer i.e., Boston Beer and ASML HOLDING go up and down completely randomly.
Pair Corralation between Boston Beer and ASML HOLDING
Assuming the 90 days trading horizon The Boston Beer is expected to under-perform the ASML HOLDING. But the stock apears to be less risky and, when comparing its historical volatility, The Boston Beer is 1.25 times less risky than ASML HOLDING. The stock trades about 0.0 of its potential returns per unit of risk. The ASML HOLDING NY is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 64,239 in ASML HOLDING NY on September 3, 2024 and sell it today you would earn a total of 1,361 from holding ASML HOLDING NY or generate 2.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Boston Beer vs. ASML HOLDING NY
Performance |
| Timeline |
| Boston Beer |
| ASML HOLDING NY |
Boston Beer and ASML HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Beer and ASML HOLDING
The main advantage of trading using opposite Boston Beer and ASML HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Beer position performs unexpectedly, ASML HOLDING 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 ASML HOLDING will offset losses from the drop in ASML HOLDING's long position.| Boston Beer vs. Globe Trade Centre | Boston Beer vs. RETAIL FOOD GROUP | Boston Beer vs. SIDETRADE EO 1 | Boston Beer vs. The Trade Desk |
| ASML HOLDING vs. GREENX METALS LTD | ASML HOLDING vs. Magnachip Semiconductor | ASML HOLDING vs. LION ONE METALS | ASML HOLDING vs. KENNAMETAL INC |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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