Correlation Between Microsoft and AUSTEVOLL SEAFOOD
Can any of the company-specific risk be diversified away by investing in both Microsoft and AUSTEVOLL SEAFOOD 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 Microsoft and AUSTEVOLL SEAFOOD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and AUSTEVOLL SEAFOOD, you can compare the effects of market volatilities on Microsoft and AUSTEVOLL SEAFOOD 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 Microsoft with a short position of AUSTEVOLL SEAFOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and AUSTEVOLL SEAFOOD.
Diversification Opportunities for Microsoft and AUSTEVOLL SEAFOOD
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Microsoft and AUSTEVOLL is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and AUSTEVOLL SEAFOOD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUSTEVOLL SEAFOOD and Microsoft 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 Microsoft are associated (or correlated) with AUSTEVOLL SEAFOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUSTEVOLL SEAFOOD has no effect on the direction of Microsoft i.e., Microsoft and AUSTEVOLL SEAFOOD go up and down completely randomly.
Pair Corralation between Microsoft and AUSTEVOLL SEAFOOD
Assuming the 90 days trading horizon Microsoft is expected to generate 6.55 times less return on investment than AUSTEVOLL SEAFOOD. But when comparing it to its historical volatility, Microsoft is 5.77 times less risky than AUSTEVOLL SEAFOOD. It trades about 0.07 of its potential returns per unit of risk. AUSTEVOLL SEAFOOD is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 273.00 in AUSTEVOLL SEAFOOD on September 28, 2024 and sell it today you would earn a total of 553.00 from holding AUSTEVOLL SEAFOOD or generate 202.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microsoft vs. AUSTEVOLL SEAFOOD
Performance |
| Timeline |
| Microsoft |
| AUSTEVOLL SEAFOOD |
Microsoft and AUSTEVOLL SEAFOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and AUSTEVOLL SEAFOOD
The main advantage of trading using opposite Microsoft and AUSTEVOLL SEAFOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, AUSTEVOLL SEAFOOD 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 AUSTEVOLL SEAFOOD will offset losses from the drop in AUSTEVOLL SEAFOOD's long position.| Microsoft vs. JLT MOBILE PUTER | Microsoft vs. Consolidated Communications Holdings | Microsoft vs. Waste Management | Microsoft vs. WillScot Mobile Mini |
| AUSTEVOLL SEAFOOD vs. ALEFARM BREWING DK 05 | AUSTEVOLL SEAFOOD vs. H FARM SPA | AUSTEVOLL SEAFOOD vs. Dairy Farm International | AUSTEVOLL SEAFOOD vs. Chongqing Machinery Electric |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |