Correlation Between ASML Holding and Global Absolute
Can any of the company-specific risk be diversified away by investing in both ASML Holding and Global Absolute 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 Global Absolute 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 Global Absolute Return, you can compare the effects of market volatilities on ASML Holding and Global Absolute 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 Global Absolute. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Global Absolute.
Diversification Opportunities for ASML Holding and Global Absolute
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between ASML and Global is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Global Absolute Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Absolute Return 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 Global Absolute. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Absolute Return has no effect on the direction of ASML Holding i.e., ASML Holding and Global Absolute go up and down completely randomly.
Pair Corralation between ASML Holding and Global Absolute
Given the investment horizon of 90 days ASML Holding NV is expected to under-perform the Global Absolute. In addition to that, ASML Holding is 4.43 times more volatile than Global Absolute Return. It trades about -0.01 of its total potential returns per unit of risk. Global Absolute Return is currently generating about 0.02 per unit of volatility. If you would invest 1,049 in Global Absolute Return on May 24, 2025 and sell it today you would earn a total of 6.00 from holding Global Absolute Return or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASML Holding NV vs. Global Absolute Return
Performance |
| Timeline |
| ASML Holding NV |
| Global Absolute Return |
ASML Holding and Global Absolute Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Global Absolute
The main advantage of trading using opposite ASML Holding and Global Absolute positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Global Absolute 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 Global Absolute will offset losses from the drop in Global Absolute's long position.| ASML Holding vs. Applied Materials | ASML Holding vs. KLA Tencor | ASML Holding vs. Axcelis Technologies | ASML Holding vs. Teradyne |
| Global Absolute vs. Prudential Real Estate | Global Absolute vs. Pender Real Estate | Global Absolute vs. Baron Real Estate | Global Absolute vs. Dfa Real Estate |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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