Correlation Between Microsoft and BEKA LUX
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By analyzing existing cross correlation between Microsoft and BEKA LUX SICAV, you can compare the effects of market volatilities on Microsoft and BEKA LUX 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 BEKA LUX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and BEKA LUX.
Diversification Opportunities for Microsoft and BEKA LUX
Good diversification
The 3 months correlation between Microsoft and BEKA is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and BEKA LUX SICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEKA LUX SICAV 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 BEKA LUX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEKA LUX SICAV has no effect on the direction of Microsoft i.e., Microsoft and BEKA LUX go up and down completely randomly.
Pair Corralation between Microsoft and BEKA LUX
Given the investment horizon of 90 days Microsoft is expected to generate 5.31 times more return on investment than BEKA LUX. However, Microsoft is 5.31 times more volatile than BEKA LUX SICAV. It trades about 0.04 of its potential returns per unit of risk. BEKA LUX SICAV is currently generating about 0.06 per unit of risk. If you would invest 37,610 in Microsoft on August 26, 2024 and sell it today you would earn a total of 4,090 from holding Microsoft or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Microsoft vs. BEKA LUX SICAV
Performance |
| Timeline |
| Microsoft |
| BEKA LUX SICAV |
Microsoft and BEKA LUX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and BEKA LUX
The main advantage of trading using opposite Microsoft and BEKA LUX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, BEKA LUX 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 BEKA LUX will offset losses from the drop in BEKA LUX's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| BEKA LUX vs. Groupama Entreprises N | BEKA LUX vs. Renaissance Europe C | BEKA LUX vs. Superior Plus Corp | BEKA LUX vs. Origin Agritech |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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