Correlation Between Microsoft and Hugo Boss
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By analyzing existing cross correlation between Microsoft and Hugo Boss AG, you can compare the effects of market volatilities on Microsoft and Hugo Boss 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 Hugo Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Hugo Boss.
Diversification Opportunities for Microsoft and Hugo Boss
Very good diversification
The 3 months correlation between Microsoft and Hugo is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Hugo Boss AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugo Boss AG 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 Hugo Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugo Boss AG has no effect on the direction of Microsoft i.e., Microsoft and Hugo Boss go up and down completely randomly.
Pair Corralation between Microsoft and Hugo Boss
Given the investment horizon of 90 days Microsoft is expected to generate 0.67 times more return on investment than Hugo Boss. However, Microsoft is 1.48 times less risky than Hugo Boss. It trades about 0.1 of its potential returns per unit of risk. Hugo Boss AG is currently generating about -0.01 per unit of risk. If you would invest 23,313 in Microsoft on September 14, 2024 and sell it today you would earn a total of 21,424 from holding Microsoft or generate 91.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.02% |
| Values | Daily Returns |
Microsoft vs. Hugo Boss AG
Performance |
| Timeline |
| Microsoft |
| Hugo Boss AG |
Microsoft and Hugo Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Hugo Boss
The main advantage of trading using opposite Microsoft and Hugo Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Hugo Boss 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 Hugo Boss will offset losses from the drop in Hugo Boss' long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| Hugo Boss vs. Superior Plus Corp | Hugo Boss vs. SIVERS SEMICONDUCTORS AB | Hugo Boss vs. Norsk Hydro ASA | Hugo Boss vs. Reliance Steel Aluminum |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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