Correlation Between ASML HOLDING and SHELF DRILLING

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

By analyzing existing cross correlation between ASML HOLDING NY and SHELF DRILLING LTD, you can compare the effects of market volatilities on ASML HOLDING and SHELF DRILLING 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 SHELF DRILLING. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML HOLDING and SHELF DRILLING.

Diversification Opportunities for ASML HOLDING and SHELF DRILLING

0.0

Correlation Coefficient

ASML HOLDING  SHELF DRILLING

Pay attention - limited upside

The 3 months correlation between ASML and SHELF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ASML HOLDING NY and SHELF DRILLING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHELF DRILLING LTD 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 NY are associated (or correlated) with SHELF DRILLING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHELF DRILLING LTD has no effect on the direction of ASML HOLDING i.e., ASML HOLDING and SHELF DRILLING go up and down completely randomly.

Pair Corralation between ASML HOLDING and SHELF DRILLING

If you would invest  45.00  in SHELF DRILLING LTD on April 24, 2025 and sell it today you would earn a total of  29.00  from holding SHELF DRILLING LTD or generate 64.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

ASML HOLDING NY  vs.  SHELF DRILLING LTD

ASML HOLDING NY

Risk-Adjusted Performance

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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

SHELF DRILLING LTD

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SHELF DRILLING LTD are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SHELF DRILLING reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ASML HOLDING and SHELF DRILLING

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

The idea behind ASML HOLDING NY and SHELF DRILLING LTD 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.