Correlation Between ASML Holding and EMagin
Can any of the company-specific risk be diversified away by investing in both ASML Holding and EMagin 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 EMagin 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 EMagin, you can compare the effects of market volatilities on ASML Holding and EMagin 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 EMagin. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and EMagin.
Diversification Opportunities for ASML Holding and EMagin
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between ASML and EMagin is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and EMagin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMagin 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 EMagin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMagin has no effect on the direction of ASML Holding i.e., ASML Holding and EMagin go up and down completely randomly.
Pair Corralation between ASML Holding and EMagin
Given the investment horizon of 90 days ASML Holding NV is expected to generate 2.28 times more return on investment than EMagin. However, ASML Holding is 2.28 times more volatile than EMagin. It trades about 0.08 of its potential returns per unit of risk. EMagin is currently generating about 0.1 per unit of risk. If you would invest 64,644 in ASML Holding NV on February 10, 2024 and sell it today you would earn a total of 26,710 from holding ASML Holding NV or generate 41.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 43.55% |
| Values | Daily Returns |
ASML Holding NV vs. EMagin
Performance |
| Timeline |
| ASML Holding NV |
| EMagin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ASML Holding and EMagin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and EMagin
The main advantage of trading using opposite ASML Holding and EMagin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, EMagin 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 EMagin will offset losses from the drop in EMagin's long position.| ASML Holding vs. NVE Corporation | ASML Holding vs. Photronics | ASML Holding vs. Kulicke and Soffa | ASML Holding vs. Alvarium Tiedemann Holdings |
| EMagin vs. KULR Technology Group | EMagin vs. Ouster Inc | EMagin vs. LightPath Technologies | EMagin vs. Daktronics |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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