Correlation Between Microsoft and FNB ETN
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By analyzing existing cross correlation between Microsoft and FNB ETN on, you can compare the effects of market volatilities on Microsoft and FNB ETN 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 FNB ETN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and FNB ETN.
Diversification Opportunities for Microsoft and FNB ETN
Good diversification
The 3 months correlation between Microsoft and FNB is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and FNB ETN on in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNB ETN on 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 FNB ETN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNB ETN on has no effect on the direction of Microsoft i.e., Microsoft and FNB ETN go up and down completely randomly.
Pair Corralation between Microsoft and FNB ETN
Given the investment horizon of 90 days Microsoft is expected to generate 1.5 times less return on investment than FNB ETN. But when comparing it to its historical volatility, Microsoft is 1.27 times less risky than FNB ETN. It trades about 0.05 of its potential returns per unit of risk. FNB ETN on is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 162,600 in FNB ETN on on September 2, 2024 and sell it today you would earn a total of 35,200 from holding FNB ETN on or generate 21.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.95% |
| Values | Daily Returns |
Microsoft vs. FNB ETN on
Performance |
| Timeline |
| Microsoft |
| FNB ETN on |
Microsoft and FNB ETN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and FNB ETN
The main advantage of trading using opposite Microsoft and FNB ETN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, FNB ETN 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 FNB ETN will offset losses from the drop in FNB ETN's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| FNB ETN vs. Europa Metals | FNB ETN vs. JSE Limited | FNB ETN vs. British American Tobacco | FNB ETN vs. Kap Industrial Holdings |
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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