Correlation Between Microsoft and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Microsoft and Duksan Hi 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 Duksan Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Duksan Hi Metal, you can compare the effects of market volatilities on Microsoft and Duksan Hi 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 Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Duksan Hi.
Diversification Opportunities for Microsoft and Duksan Hi
Very good diversification
The 3 months correlation between Microsoft and Duksan is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal 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 Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Microsoft i.e., Microsoft and Duksan Hi go up and down completely randomly.
Pair Corralation between Microsoft and Duksan Hi
Given the investment horizon of 90 days Microsoft is expected to generate 0.5 times more return on investment than Duksan Hi. However, Microsoft is 2.01 times less risky than Duksan Hi. It trades about 0.03 of its potential returns per unit of risk. Duksan Hi Metal is currently generating about -0.21 per unit of risk. If you would invest 40,978 in Microsoft on August 28, 2024 and sell it today you would earn a total of 901.00 from holding Microsoft or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.06% |
| Values | Daily Returns |
Microsoft vs. Duksan Hi Metal
Performance |
| Timeline |
| Microsoft |
| Duksan Hi Metal |
Microsoft and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Duksan Hi
The main advantage of trading using opposite Microsoft and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Microsoft vs. GigaCloud Technology Class | Microsoft vs. Arqit Quantum | Microsoft vs. Cemtrex | Microsoft vs. Paysafe |
| Duksan Hi vs. Korea Real Estate | Duksan Hi vs. Korea Ratings Co | Duksan Hi vs. IQuest Co | Duksan Hi vs. Wonbang Tech Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |