Correlation Between Microsoft and Bucharest BET-NG
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By analyzing existing cross correlation between Microsoft and Bucharest BET-NG, you can compare the effects of market volatilities on Microsoft and Bucharest BET-NG 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 Bucharest BET-NG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Bucharest BET-NG.
Diversification Opportunities for Microsoft and Bucharest BET-NG
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Microsoft and Bucharest is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Bucharest BET-NG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bucharest BET-NG 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 Bucharest BET-NG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bucharest BET-NG has no effect on the direction of Microsoft i.e., Microsoft and Bucharest BET-NG go up and down completely randomly.
Pair Corralation between Microsoft and Bucharest BET-NG
Given the investment horizon of 90 days Microsoft is expected to generate 2.39 times more return on investment than Bucharest BET-NG. However, Microsoft is 2.39 times more volatile than Bucharest BET-NG. It trades about -0.04 of its potential returns per unit of risk. Bucharest BET-NG is currently generating about -0.11 per unit of risk. If you would invest 42,388 in Microsoft on August 25, 2024 and sell it today you would lose (688.00) from holding Microsoft or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microsoft vs. Bucharest BET-NG
Performance |
| Timeline |
Microsoft and Bucharest BET-NG Volatility Contrast
Predicted Return Density |
| Returns |
Microsoft
Pair trading matchups for Microsoft
Bucharest BET-NG
Pair trading matchups for Bucharest BET-NG
Pair Trading with Microsoft and Bucharest BET-NG
The main advantage of trading using opposite Microsoft and Bucharest BET-NG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Bucharest BET-NG 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 Bucharest BET-NG will offset losses from the drop in Bucharest BET-NG's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| Bucharest BET-NG vs. Infinity Capital Investments | Bucharest BET-NG vs. Digi Communications NV | Bucharest BET-NG vs. Safetech Innovations SA | Bucharest BET-NG vs. Patria Bank SA |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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