Correlation Between Asml Holdings and Aeroclean Technologies

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Can any of the company-specific risk be diversified away by investing in both Asml Holdings and Aeroclean Technologies 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 Holdings and Aeroclean Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asml Holdings NY and Aeroclean Technologies, you can compare the effects of market volatilities on Asml Holdings and Aeroclean Technologies 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 Holdings with a short position of Aeroclean Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asml Holdings and Aeroclean Technologies.

Diversification Opportunities for Asml Holdings and Aeroclean Technologies

-0.32
  Correlation Coefficient

Very good diversification

The 3 months correlation between Asml Holdings and Aeroclean is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Asml Holdings NY and Aeroclean Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeroclean Technologies and Asml Holdings 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 Holdings NY are associated (or correlated) with Aeroclean Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeroclean Technologies has no effect on the direction of Asml Holdings i.e., Asml Holdings and Aeroclean Technologies go up and down completely randomly.

Pair Corralation between Asml Holdings and Aeroclean Technologies

Given the investment horizon of 90 days Asml Holdings NY is expected to generate 0.41 times more return on investment than Aeroclean Technologies. However, Asml Holdings NY is 2.46 times less risky than Aeroclean Technologies. It trades about -0.38 of its potential returns per unit of risk. Aeroclean Technologies is currently generating about -0.33 per unit of risk. If you would invest  53,974  in Asml Holdings NY on June 26, 2022 and sell it today you would lose (10,360)  from holding Asml Holdings NY or give up 19.19% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Asml Holdings NY  vs.  Aeroclean Technologies

 Performance (%) 
       Timeline  
Asml Holdings NY 
Asml Holdings Performance
0 of 100
Over the last 90 days Asml Holdings NY has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest sluggish performance, the Stock's primary indicators remain steady and the new chaos on Wall Street may also be a sign of medium-term gains for the company stakeholders.

Asml Holdings Price Channel

Aeroclean Technologies 
Aeroclean Performance
0 of 100
Over the last 90 days Aeroclean Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in October 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Aeroclean Price Channel

Asml Holdings and Aeroclean Technologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Asml Holdings and Aeroclean Technologies

The main advantage of trading using opposite Asml Holdings and Aeroclean Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asml Holdings position performs unexpectedly, Aeroclean Technologies 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 Aeroclean Technologies will offset losses from the drop in Aeroclean Technologies' long position.
Asml Holdings vs. Sigma Lithium Corp
The idea behind Asml Holdings NY and Aeroclean Technologies 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.
Aeroclean Technologies vs. BUSHVELD MINERALS LTD
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 Transaction History module to view history of all your transactions and understand their impact on performance.

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