Correlation Between ASML Holding and BANORT
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By analyzing existing cross correlation between ASML Holding NV and BANORT 8 38, you can compare the effects of market volatilities on ASML Holding and BANORT 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 BANORT. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and BANORT.
Diversification Opportunities for ASML Holding and BANORT
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between ASML and BANORT is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and BANORT 8 38 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANORT 8 38 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 BANORT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANORT 8 38 has no effect on the direction of ASML Holding i.e., ASML Holding and BANORT go up and down completely randomly.
Pair Corralation between ASML Holding and BANORT
Given the investment horizon of 90 days ASML Holding NV is expected to generate 1.58 times more return on investment than BANORT. However, ASML Holding is 1.58 times more volatile than BANORT 8 38. It trades about -0.01 of its potential returns per unit of risk. BANORT 8 38 is currently generating about -0.08 per unit of risk. If you would invest 96,369 in ASML Holding NV on June 2, 2024 and sell it today you would lose (5,982) from holding ASML Holding NV or give up 6.21% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 67.19% |
Values | Daily Returns |
ASML Holding NV vs. BANORT 8 38
Performance |
Timeline |
ASML Holding NV |
BANORT 8 38 |
ASML Holding and BANORT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ASML Holding and BANORT
The main advantage of trading using opposite ASML Holding and BANORT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, BANORT 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 BANORT will offset losses from the drop in BANORT's long position.ASML Holding vs. Applied Materials | ASML Holding vs. KLA Tencor | ASML Holding vs. Axcelis Technologies | ASML Holding vs. Teradyne |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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