Correlation Between Microsoft and KLP AksjeNorge
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By analyzing existing cross correlation between Microsoft and KLP AksjeNorge Indeks, you can compare the effects of market volatilities on Microsoft and KLP AksjeNorge 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 KLP AksjeNorge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and KLP AksjeNorge.
Diversification Opportunities for Microsoft and KLP AksjeNorge
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and KLP is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and KLP AksjeNorge Indeks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLP AksjeNorge Indeks 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 KLP AksjeNorge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLP AksjeNorge Indeks has no effect on the direction of Microsoft i.e., Microsoft and KLP AksjeNorge go up and down completely randomly.
Pair Corralation between Microsoft and KLP AksjeNorge
Given the investment horizon of 90 days Microsoft is expected to generate 2.68 times less return on investment than KLP AksjeNorge. In addition to that, Microsoft is 1.63 times more volatile than KLP AksjeNorge Indeks. It trades about 0.01 of its total potential returns per unit of risk. KLP AksjeNorge Indeks is currently generating about 0.03 per unit of volatility. If you would invest 375,065 in KLP AksjeNorge Indeks on September 3, 2024 and sell it today you would earn a total of 11,482 from holding KLP AksjeNorge Indeks or generate 3.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.43% |
| Values | Daily Returns |
Microsoft vs. KLP AksjeNorge Indeks
Performance |
| Timeline |
| Microsoft |
| KLP AksjeNorge Indeks |
Microsoft and KLP AksjeNorge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and KLP AksjeNorge
The main advantage of trading using opposite Microsoft and KLP AksjeNorge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, KLP AksjeNorge 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 KLP AksjeNorge will offset losses from the drop in KLP AksjeNorge's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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