Correlation Between Microsoft and Groupama Entreprises
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By analyzing existing cross correlation between Microsoft and Groupama Entreprises N, you can compare the effects of market volatilities on Microsoft and Groupama Entreprises 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 Groupama Entreprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Groupama Entreprises.
Diversification Opportunities for Microsoft and Groupama Entreprises
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Microsoft and Groupama is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Groupama Entreprises N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupama Entreprises 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 Groupama Entreprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupama Entreprises has no effect on the direction of Microsoft i.e., Microsoft and Groupama Entreprises go up and down completely randomly.
Pair Corralation between Microsoft and Groupama Entreprises
Given the investment horizon of 90 days Microsoft is expected to generate 106.25 times more return on investment than Groupama Entreprises. However, Microsoft is 106.25 times more volatile than Groupama Entreprises N. It trades about 0.08 of its potential returns per unit of risk. Groupama Entreprises N is currently generating about 0.97 per unit of risk. If you would invest 24,616 in Microsoft on August 26, 2024 and sell it today you would earn a total of 17,084 from holding Microsoft or generate 69.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.61% |
| Values | Daily Returns |
Microsoft vs. Groupama Entreprises N
Performance |
| Timeline |
| Microsoft |
| Groupama Entreprises |
Microsoft and Groupama Entreprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Groupama Entreprises
The main advantage of trading using opposite Microsoft and Groupama Entreprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Groupama Entreprises 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 Groupama Entreprises will offset losses from the drop in Groupama Entreprises' long position.| Microsoft vs. GigaCloud Technology Class | Microsoft vs. Arqit Quantum | Microsoft vs. Cemtrex | Microsoft vs. Rapid7 Inc |
| Groupama Entreprises vs. Lyxor 1 | Groupama Entreprises vs. Xtrackers LevDAX | Groupama Entreprises vs. Xtrackers ShortDAX |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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