Correlation Between Microsoft and COMMERCIAL BANK
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By analyzing existing cross correlation between Microsoft and COMMERCIAL BANK OF, you can compare the effects of market volatilities on Microsoft and COMMERCIAL BANK 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 COMMERCIAL BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and COMMERCIAL BANK.
Diversification Opportunities for Microsoft and COMMERCIAL BANK
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and COMMERCIAL is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and COMMERCIAL BANK OF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMMERCIAL BANK 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 COMMERCIAL BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMMERCIAL BANK has no effect on the direction of Microsoft i.e., Microsoft and COMMERCIAL BANK go up and down completely randomly.
Pair Corralation between Microsoft and COMMERCIAL BANK
Given the investment horizon of 90 days Microsoft is expected to generate 1.16 times more return on investment than COMMERCIAL BANK. However, Microsoft is 1.16 times more volatile than COMMERCIAL BANK OF. It trades about 0.15 of its potential returns per unit of risk. COMMERCIAL BANK OF is currently generating about 0.16 per unit of risk. If you would invest 40,955 in Microsoft on September 2, 2024 and sell it today you would earn a total of 1,391 from holding Microsoft or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Microsoft vs. COMMERCIAL BANK OF
Performance |
| Timeline |
| Microsoft |
| COMMERCIAL BANK |
Microsoft and COMMERCIAL BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and COMMERCIAL BANK
The main advantage of trading using opposite Microsoft and COMMERCIAL BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, COMMERCIAL BANK 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 COMMERCIAL BANK will offset losses from the drop in COMMERCIAL BANK's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| COMMERCIAL BANK vs. Convenience Foods PLC | COMMERCIAL BANK vs. Arpico Insurance | COMMERCIAL BANK vs. Lanka Realty Investments | COMMERCIAL BANK vs. Ceylon Hospitals PLC |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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