Correlation Between CALTAGIRONE EDITORE and ASML Holding

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

By analyzing existing cross correlation between CALTAGIRONE EDITORE and ASML Holding NV, you can compare the effects of market volatilities on CALTAGIRONE EDITORE 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 CALTAGIRONE EDITORE with a short position of ASML Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of CALTAGIRONE EDITORE and ASML Holding.

Diversification Opportunities for CALTAGIRONE EDITORE and ASML Holding

-0.28

Correlation Coefficient

CALTAGIRONE EDITORE  ASML Holding

Very good diversification

The 3 months correlation between CALTAGIRONE and ASML is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding CALTAGIRONE EDITORE 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 CALTAGIRONE EDITORE 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 CALTAGIRONE EDITORE 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 CALTAGIRONE EDITORE i.e., CALTAGIRONE EDITORE and ASML Holding go up and down completely randomly.

Pair Corralation between CALTAGIRONE EDITORE and ASML Holding

Assuming the 90 days trading horizon CALTAGIRONE EDITORE is expected to generate 6.57 times less return on investment than ASML Holding. But when comparing it to its historical volatility, CALTAGIRONE EDITORE is 1.31 times less risky than ASML Holding. It trades about 0.02 of its potential returns per unit of risk. ASML Holding NV is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  55,825  in ASML Holding NV on April 20, 2025 and sell it today you would earn a total of  7,775  from holding ASML Holding NV or generate 13.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

CALTAGIRONE EDITORE  vs.  ASML Holding NV

CALTAGIRONE EDITORE

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CALTAGIRONE EDITORE are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, CALTAGIRONE EDITORE is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

ASML Holding NV

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ASML Holding NV are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, ASML Holding reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CALTAGIRONE EDITORE and ASML Holding

The main advantage of trading using opposite CALTAGIRONE EDITORE and ASML Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CALTAGIRONE EDITORE 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.

The idea behind CALTAGIRONE EDITORE and ASML Holding NV 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.