Correlation Between PENN NATL and ASML HOLDING
Can any of the company-specific risk be diversified away by investing in both PENN NATL 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 PENN NATL and ASML HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PENN NATL GAMING and ASML HOLDING NY, you can compare the effects of market volatilities on PENN NATL 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 PENN NATL with a short position of ASML HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of PENN NATL and ASML HOLDING.
Diversification Opportunities for PENN NATL and ASML HOLDING
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PENN and ASML is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding PENN NATL GAMING 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 PENN NATL 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 PENN NATL GAMING 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 PENN NATL i.e., PENN NATL and ASML HOLDING go up and down completely randomly.
Pair Corralation between PENN NATL and ASML HOLDING
Assuming the 90 days trading horizon PENN NATL GAMING is expected to generate 0.96 times more return on investment than ASML HOLDING. However, PENN NATL GAMING is 1.04 times less risky than ASML HOLDING. It trades about 0.08 of its potential returns per unit of risk. ASML HOLDING NY is currently generating about -0.06 per unit of risk. If you would invest 1,564 in PENN NATL GAMING on September 2, 2024 and sell it today you would earn a total of 419.00 from holding PENN NATL GAMING or generate 26.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PENN NATL GAMING vs. ASML HOLDING NY
Performance |
| Timeline |
| PENN NATL GAMING |
| ASML HOLDING NY |
PENN NATL and ASML HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PENN NATL and ASML HOLDING
The main advantage of trading using opposite PENN NATL and ASML HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PENN NATL 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.| PENN NATL vs. SIVERS SEMICONDUCTORS AB | PENN NATL vs. Darden Restaurants | PENN NATL vs. Reliance Steel Aluminum | PENN NATL vs. Q2M Managementberatung AG |
| ASML HOLDING vs. The Boston Beer | ASML HOLDING vs. Austevoll Seafood ASA | ASML HOLDING vs. NIPPON MEAT PACKERS | ASML HOLDING vs. Dairy Farm International |
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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