Correlation Between Microsoft and HKFoods Oyj
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By analyzing existing cross correlation between Microsoft and HKFoods Oyj A, you can compare the effects of market volatilities on Microsoft and HKFoods Oyj 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 HKFoods Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and HKFoods Oyj.
Diversification Opportunities for Microsoft and HKFoods Oyj
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and HKFoods is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and HKFoods Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HKFoods Oyj A 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 HKFoods Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HKFoods Oyj A has no effect on the direction of Microsoft i.e., Microsoft and HKFoods Oyj go up and down completely randomly.
Pair Corralation between Microsoft and HKFoods Oyj
Given the investment horizon of 90 days Microsoft is expected to generate 0.54 times more return on investment than HKFoods Oyj. However, Microsoft is 1.87 times less risky than HKFoods Oyj. It trades about 0.09 of its potential returns per unit of risk. HKFoods Oyj A is currently generating about 0.05 per unit of risk. If you would invest 25,262 in Microsoft on August 27, 2024 and sell it today you would earn a total of 16,438 from holding Microsoft or generate 65.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 33.63% |
| Values | Daily Returns |
Microsoft vs. HKFoods Oyj A
Performance |
| Timeline |
| Microsoft |
| HKFoods Oyj A |
Microsoft and HKFoods Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and HKFoods Oyj
The main advantage of trading using opposite Microsoft and HKFoods Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, HKFoods Oyj 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 HKFoods Oyj will offset losses from the drop in HKFoods Oyj's long position.| Microsoft vs. GigaCloud Technology Class | Microsoft vs. Arqit Quantum | Microsoft vs. Cemtrex | Microsoft vs. Paysafe |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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