Correlation Between ASML Holding and Track Field

Can any of the company-specific risk be diversified away by investing in both ASML Holding and Track Field 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 Track Field 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 Track Field Co, you can compare the effects of market volatilities on ASML Holding and Track Field 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 Track Field. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Track Field.

Diversification Opportunities for ASML Holding and Track Field

0.79

Correlation Coefficient

ASML Holding  Track Field

Poor diversification

The 3 months correlation between ASML and Track is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Track Field Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Track Field 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 Track Field. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Track Field has no effect on the direction of ASML Holding i.e., ASML Holding and Track Field go up and down completely randomly.

Pair Corralation between ASML Holding and Track Field

Assuming the 90 days trading horizon ASML Holding is expected to generate 4.46 times less return on investment than Track Field. In addition to that, ASML Holding is 1.01 times more volatile than Track Field Co. It trades about 0.04 of its total potential returns per unit of risk. Track Field Co is currently generating about 0.19 per unit of volatility. If you would invest  1,105  in Track Field Co on April 24, 2025 and sell it today you would earn a total of  284.00  from holding Track Field Co or generate 25.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

ASML Holding NV  vs.  Track Field Co

ASML Holding NV

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ASML Holding NV are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong primary indicators, ASML Holding is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Track Field

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Track Field Co are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Track Field unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ASML Holding and Track Field

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

The idea behind ASML Holding NV and Track Field Co 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.