Correlation Between Microsoft and Exploitasi Energi
Can any of the company-specific risk be diversified away by investing in both Microsoft and Exploitasi Energi at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Microsoft and Exploitasi Energi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Exploitasi Energi Indonesia, you can compare the effects of market volatilities on Microsoft and Exploitasi Energi 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 Exploitasi Energi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Exploitasi Energi.
Diversification Opportunities for Microsoft and Exploitasi Energi
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and Exploitasi is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Exploitasi Energi Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exploitasi Energi 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 Exploitasi Energi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exploitasi Energi has no effect on the direction of Microsoft i.e., Microsoft and Exploitasi Energi go up and down completely randomly.
Pair Corralation between Microsoft and Exploitasi Energi
Given the investment horizon of 90 days Microsoft is expected to generate 0.12 times more return on investment than Exploitasi Energi. However, Microsoft is 8.49 times less risky than Exploitasi Energi. It trades about 0.02 of its potential returns per unit of risk. Exploitasi Energi Indonesia is currently generating about -0.05 per unit of risk. If you would invest 40,520 in Microsoft on August 25, 2024 and sell it today you would earn a total of 1,180 from holding Microsoft or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.68% |
| Values | Daily Returns |
Microsoft vs. Exploitasi Energi Indonesia
Performance |
| Timeline |
| Microsoft |
| Exploitasi Energi |
Microsoft and Exploitasi Energi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Exploitasi Energi
The main advantage of trading using opposite Microsoft and Exploitasi Energi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Exploitasi Energi 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 Exploitasi Energi will offset losses from the drop in Exploitasi Energi's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| Exploitasi Energi vs. Petrosea Tbk | Exploitasi Energi vs. Harum Energy Tbk | Exploitasi Energi vs. Perdana Karya Perkasa | Exploitasi Energi vs. Samindo Resources Tbk |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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