Correlation Between Tokyo Electron and ASML Holding
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By analyzing existing cross correlation between Tokyo Electron Limited and ASML Holding NV, you can compare the effects of market volatilities on Tokyo Electron 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 Tokyo Electron with a short position of ASML Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tokyo Electron and ASML Holding.
Diversification Opportunities for Tokyo Electron and ASML Holding
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tokyo and ASML is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Tokyo Electron Limited and ASML Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASML Holding NV and Tokyo Electron 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 Tokyo Electron Limited 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 NV has no effect on the direction of Tokyo Electron i.e., Tokyo Electron and ASML Holding go up and down completely randomly.
Pair Corralation between Tokyo Electron and ASML Holding
Assuming the 90 days horizon Tokyo Electron Limited is expected to under-perform the ASML Holding. In addition to that, Tokyo Electron is 1.17 times more volatile than ASML Holding NV. It trades about -0.01 of its total potential returns per unit of risk. ASML Holding NV is currently generating about 0.03 per unit of volatility. If you would invest 66,057 in ASML Holding NV on December 2, 2024 and sell it today you would earn a total of 1,763 from holding ASML Holding NV or generate 2.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Tokyo Electron Limited vs. ASML Holding NV
Performance |
Timeline |
Tokyo Electron |
ASML Holding NV |
Tokyo Electron and ASML Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tokyo Electron and ASML Holding
The main advantage of trading using opposite Tokyo Electron and ASML Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tokyo Electron 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.Tokyo Electron vs. TITAN MACHINERY | Tokyo Electron vs. TRI CHEMICAL LABORATINC | Tokyo Electron vs. AGRICULTBK HADR25 YC | Tokyo Electron vs. North American Construction |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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