Correlation Between Microsoft and Hatton National
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By analyzing existing cross correlation between Microsoft and Hatton National Bank, you can compare the effects of market volatilities on Microsoft and Hatton National 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 Hatton National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Hatton National.
Diversification Opportunities for Microsoft and Hatton National
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Microsoft and Hatton is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Hatton National Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hatton National 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 Hatton National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hatton National Bank has no effect on the direction of Microsoft i.e., Microsoft and Hatton National go up and down completely randomly.
Pair Corralation between Microsoft and Hatton National
Given the investment horizon of 90 days Microsoft is expected to under-perform the Hatton National. In addition to that, Microsoft is 1.14 times more volatile than Hatton National Bank. It trades about -0.04 of its total potential returns per unit of risk. Hatton National Bank is currently generating about 0.15 per unit of volatility. If you would invest 21,950 in Hatton National Bank on August 28, 2024 and sell it today you would earn a total of 950.00 from holding Hatton National Bank or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Microsoft vs. Hatton National Bank
Performance |
| Timeline |
| Microsoft |
| Hatton National Bank |
Microsoft and Hatton National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Hatton National
The main advantage of trading using opposite Microsoft and Hatton National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Hatton National 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 Hatton National will offset losses from the drop in Hatton National'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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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