Correlation Between ASML Holding and Cohen Circle
Can any of the company-specific risk be diversified away by investing in both ASML Holding and Cohen Circle 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 Cohen Circle 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 Cohen Circle Acquisition, you can compare the effects of market volatilities on ASML Holding and Cohen Circle 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 Cohen Circle. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Cohen Circle.
Diversification Opportunities for ASML Holding and Cohen Circle
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ASML and Cohen is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Cohen Circle Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Circle Acquisition 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 Cohen Circle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Circle Acquisition has no effect on the direction of ASML Holding i.e., ASML Holding and Cohen Circle go up and down completely randomly.
Pair Corralation between ASML Holding and Cohen Circle
Given the investment horizon of 90 days ASML Holding is expected to generate 5.2 times less return on investment than Cohen Circle. In addition to that, ASML Holding is 1.98 times more volatile than Cohen Circle Acquisition. It trades about 0.02 of its total potential returns per unit of risk. Cohen Circle Acquisition is currently generating about 0.25 per unit of volatility. If you would invest 1,009 in Cohen Circle Acquisition on December 18, 2024 and sell it today you would earn a total of 198.00 from holding Cohen Circle Acquisition or generate 19.62% 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. Cohen Circle Acquisition
Performance |
Timeline |
ASML Holding NV |
Cohen Circle Acquisition |
ASML Holding and Cohen Circle Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ASML Holding and Cohen Circle
The main advantage of trading using opposite ASML Holding and Cohen Circle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, Cohen Circle 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 Cohen Circle will offset losses from the drop in Cohen Circle's long position.ASML Holding vs. Applied Materials | ASML Holding vs. KLA Tencor | ASML Holding vs. Axcelis Technologies | ASML Holding vs. Teradyne |
Cohen Circle vs. Ardelyx | Cohen Circle vs. National Waste Management | Cohen Circle vs. Cardinal Health | Cohen Circle vs. Small Cap Premium |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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