Correlation Between ASML Holding and Tiaa-cref Intl
Can any of the company-specific risk be diversified away by investing in both ASML Holding and Tiaa-cref Intl 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 Tiaa-cref Intl 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 Tiaa Cref Intl Bond, you can compare the effects of market volatilities on ASML Holding and Tiaa-cref Intl 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 Tiaa-cref Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Tiaa-cref Intl.
Diversification Opportunities for ASML Holding and Tiaa-cref Intl
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between ASML and Tiaa-cref is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Tiaa Cref Intl Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Intl 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 Tiaa-cref Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Intl has no effect on the direction of ASML Holding i.e., ASML Holding and Tiaa-cref Intl go up and down completely randomly.
Pair Corralation between ASML Holding and Tiaa-cref Intl
Given the investment horizon of 90 days ASML Holding is expected to generate 1.06 times less return on investment than Tiaa-cref Intl. In addition to that, ASML Holding is 15.31 times more volatile than Tiaa Cref Intl Bond. It trades about 0.01 of its total potential returns per unit of risk. Tiaa Cref Intl Bond is currently generating about 0.16 per unit of volatility. If you would invest 874.00 in Tiaa Cref Intl Bond on May 26, 2025 and sell it today you would earn a total of 11.00 from holding Tiaa Cref Intl Bond or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASML Holding NV vs. Tiaa Cref Intl Bond
Performance |
| Timeline |
| ASML Holding NV |
| Tiaa Cref Intl |
ASML Holding and Tiaa-cref Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASML Holding and Tiaa-cref Intl
The main advantage of trading using opposite ASML Holding and Tiaa-cref Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Tiaa-cref Intl 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 Tiaa-cref Intl will offset losses from the drop in Tiaa-cref Intl's long position.| ASML Holding vs. Applied Materials | ASML Holding vs. KLA Tencor | ASML Holding vs. Axcelis Technologies | ASML Holding vs. Teradyne |
| Tiaa-cref Intl vs. John Hancock Financial | Tiaa-cref Intl vs. Davis Financial Fund | Tiaa-cref Intl vs. Blackrock Financial Institutions | Tiaa-cref Intl vs. Prudential Financial Services |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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