Correlation Between ASML Holding and Greystone Logistics
Can any of the company-specific risk be diversified away by investing in both ASML Holding and Greystone Logistics 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 Greystone Logistics 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 Greystone Logistics, you can compare the effects of market volatilities on ASML Holding and Greystone Logistics 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 Greystone Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Greystone Logistics.
Diversification Opportunities for ASML Holding and Greystone Logistics
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ASML and Greystone is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Greystone Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greystone Logistics 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 Greystone Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greystone Logistics has no effect on the direction of ASML Holding i.e., ASML Holding and Greystone Logistics go up and down completely randomly.
Pair Corralation between ASML Holding and Greystone Logistics
Given the investment horizon of 90 days ASML Holding NV is expected to generate 0.67 times more return on investment than Greystone Logistics. However, ASML Holding NV is 1.49 times less risky than Greystone Logistics. It trades about 0.11 of its potential returns per unit of risk. Greystone Logistics is currently generating about 0.01 per unit of risk. If you would invest 76,554 in ASML Holding NV on January 20, 2024 and sell it today you would earn a total of 12,349 from holding ASML Holding NV or generate 16.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
ASML Holding NV vs. Greystone Logistics
Performance |
| Timeline |
| ASML Holding NV |
| Greystone Logistics |
ASML Holding and Greystone Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Greystone Logistics
The main advantage of trading using opposite ASML Holding and Greystone Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Greystone Logistics 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 Greystone Logistics will offset losses from the drop in Greystone Logistics' long position.| ASML Holding vs. Entegris | ASML Holding vs. Analog Devices | ASML Holding vs. Arm Holdings plc | ASML Holding vs. FormFactor |
| Greystone Logistics vs. Alumina Limited | Greystone Logistics vs. HUMANA INC | Greystone Logistics vs. Aquagold International | Greystone Logistics vs. Spring Valley Acquisition |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |