Correlation Between Just Eat and ASML Holding
Can any of the company-specific risk be diversified away by investing in both Just Eat 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 Just Eat and ASML Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Just Eat Takeaway and ASML Holding NV, you can compare the effects of market volatilities on Just Eat 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 Just Eat with a short position of ASML Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Just Eat and ASML Holding.
Diversification Opportunities for Just Eat and ASML Holding
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Just and ASML is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Just Eat Takeaway and ASML Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASML Holding NV and Just Eat 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 Just Eat Takeaway 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 NV has no effect on the direction of Just Eat i.e., Just Eat and ASML Holding go up and down completely randomly.
Pair Corralation between Just Eat and ASML Holding
Assuming the 90 days trading horizon Just Eat Takeaway is expected to generate 1.04 times more return on investment than ASML Holding. However, Just Eat is 1.04 times more volatile than ASML Holding NV. It trades about 0.06 of its potential returns per unit of risk. ASML Holding NV is currently generating about -0.08 per unit of risk. If you would invest 1,298 in Just Eat Takeaway on August 28, 2024 and sell it today you would earn a total of 132.00 from holding Just Eat Takeaway or generate 10.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Just Eat Takeaway vs. ASML Holding NV
Performance |
| Timeline |
| Just Eat Takeaway |
| ASML Holding NV |
Just Eat and ASML Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Just Eat and ASML Holding
The main advantage of trading using opposite Just Eat and ASML Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Just Eat 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.| Just Eat vs. Prosus NV | Just Eat vs. Koninklijke Ahold Delhaize | Just Eat vs. Adyen NV | Just Eat vs. ASML Holding NV |
| ASML Holding vs. Adyen NV | ASML Holding vs. Prosus NV | ASML Holding vs. Koninklijke Philips NV | ASML Holding vs. Koninklijke Ahold Delhaize |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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