Correlation Between Microsoft and KENGEN PLC
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By analyzing existing cross correlation between Microsoft and KENGEN PLC, you can compare the effects of market volatilities on Microsoft and KENGEN PLC 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 KENGEN PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and KENGEN PLC.
Diversification Opportunities for Microsoft and KENGEN PLC
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Microsoft and KENGEN is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and KENGEN PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENGEN PLC 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 KENGEN PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENGEN PLC has no effect on the direction of Microsoft i.e., Microsoft and KENGEN PLC go up and down completely randomly.
Pair Corralation between Microsoft and KENGEN PLC
Given the investment horizon of 90 days Microsoft is expected to under-perform the KENGEN PLC. But the stock apears to be less risky and, when comparing its historical volatility, Microsoft is 2.27 times less risky than KENGEN PLC. The stock trades about -0.07 of its potential returns per unit of risk. The KENGEN PLC is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 341.00 in KENGEN PLC on October 23, 2024 and sell it today you would earn a total of 73.00 from holding KENGEN PLC or generate 21.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Microsoft vs. KENGEN PLC
Performance |
| Timeline |
| Microsoft |
| KENGEN PLC |
Microsoft and KENGEN PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and KENGEN PLC
The main advantage of trading using opposite Microsoft and KENGEN PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, KENGEN PLC 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 KENGEN PLC will offset losses from the drop in KENGEN PLC's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. BLOCK INC | Microsoft vs. Adobe Systems Incorporated |
| KENGEN PLC vs. KENYA ORCHARDS LTD | KENGEN PLC vs. NAIROBI BUSINESS VENTURES | KENGEN PLC vs. KENYA RE INSURANCE PORATION | KENGEN PLC vs. WPP SCANGROUP 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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