Correlation Between ASML Holding and First Graphene
Can any of the company-specific risk be diversified away by investing in both ASML Holding and First Graphene 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 First Graphene 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 First Graphene, you can compare the effects of market volatilities on ASML Holding and First Graphene 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 First Graphene. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and First Graphene.
Diversification Opportunities for ASML Holding and First Graphene
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ASML and First is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and First Graphene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Graphene 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 First Graphene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Graphene has no effect on the direction of ASML Holding i.e., ASML Holding and First Graphene go up and down completely randomly.
Pair Corralation between ASML Holding and First Graphene
Assuming the 90 days horizon ASML Holding NV is expected to generate 0.18 times more return on investment than First Graphene. However, ASML Holding NV is 5.56 times less risky than First Graphene. It trades about 0.06 of its potential returns per unit of risk. First Graphene is currently generating about 0.0 per unit of risk. If you would invest 66,953 in ASML Holding NV on April 26, 2025 and sell it today you would earn a total of 4,147 from holding ASML Holding NV or generate 6.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ASML Holding NV vs. First Graphene
Performance |
Timeline |
ASML Holding NV |
First Graphene |
ASML Holding and First Graphene Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ASML Holding and First Graphene
The main advantage of trading using opposite ASML Holding and First Graphene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding position performs unexpectedly, First Graphene 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 First Graphene will offset losses from the drop in First Graphene's long position.ASML Holding vs. Asm Pacific Technology | ASML Holding vs. BE Semiconductor Industries | ASML Holding vs. BHP Group Limited | ASML Holding vs. Bank of America |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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