Correlation Between ATOSS SOFTWARE and ASML HOLDING

Can any of the company-specific risk be diversified away by investing in both ATOSS SOFTWARE and ASML HOLDING 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 ATOSS SOFTWARE and ASML HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ATOSS SOFTWARE and ASML HOLDING NY, you can compare the effects of market volatilities on ATOSS SOFTWARE and ASML HOLDING 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 ATOSS SOFTWARE with a short position of ASML HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATOSS SOFTWARE and ASML HOLDING.

Diversification Opportunities for ATOSS SOFTWARE and ASML HOLDING

0.56

Correlation Coefficient

ATOSS SOFTWARE  ASML HOLDING

Very weak diversification

The 3 months correlation between ATOSS and ASML is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding ATOSS SOFTWARE and ASML HOLDING NY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASML HOLDING NY and ATOSS SOFTWARE 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 ATOSS SOFTWARE are associated (or correlated) with ASML HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASML HOLDING NY has no effect on the direction of ATOSS SOFTWARE i.e., ATOSS SOFTWARE and ASML HOLDING go up and down completely randomly.

Pair Corralation between ATOSS SOFTWARE and ASML HOLDING

Assuming the 90 days trading horizon ATOSS SOFTWARE is expected to generate 0.71 times more return on investment than ASML HOLDING. However, ATOSS SOFTWARE is 1.41 times less risky than ASML HOLDING. It trades about -0.01 of its potential returns per unit of risk. ASML HOLDING NY is currently generating about -0.02 per unit of risk. If you would invest  12,140  in ATOSS SOFTWARE on September 14, 2024 and sell it today you would lose (400.00) from holding ATOSS SOFTWARE or give up 3.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

ATOSS SOFTWARE  vs.  ASML HOLDING NY

ATOSS SOFTWARE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATOSS SOFTWARE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, ATOSS SOFTWARE is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

ASML HOLDING NY

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ASML HOLDING NY has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, ASML HOLDING is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ATOSS SOFTWARE and ASML HOLDING

The main advantage of trading using opposite ATOSS SOFTWARE and ASML HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATOSS SOFTWARE position performs unexpectedly, ASML HOLDING 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 ASML HOLDING will offset losses from the drop in ASML HOLDING's long position.

The idea behind ATOSS SOFTWARE and ASML HOLDING NY pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.