Correlation Between Microsoft and Keynote Financial
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By analyzing existing cross correlation between Microsoft and Keynote Financial Services, you can compare the effects of market volatilities on Microsoft and Keynote Financial 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 Keynote Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Keynote Financial.
Diversification Opportunities for Microsoft and Keynote Financial
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Microsoft and Keynote is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Keynote Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keynote Financial 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 Keynote Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keynote Financial has no effect on the direction of Microsoft i.e., Microsoft and Keynote Financial go up and down completely randomly.
Pair Corralation between Microsoft and Keynote Financial
Given the investment horizon of 90 days Microsoft is expected to generate 4.29 times less return on investment than Keynote Financial. But when comparing it to its historical volatility, Microsoft is 3.43 times less risky than Keynote Financial. It trades about 0.06 of its potential returns per unit of risk. Keynote Financial Services is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 9,388 in Keynote Financial Services on August 31, 2024 and sell it today you would earn a total of 14,662 from holding Keynote Financial Services or generate 156.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.33% |
| Values | Daily Returns |
Microsoft vs. Keynote Financial Services
Performance |
| Timeline |
| Microsoft |
| Keynote Financial |
Microsoft and Keynote Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Keynote Financial
The main advantage of trading using opposite Microsoft and Keynote Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Keynote Financial 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 Keynote Financial will offset losses from the drop in Keynote Financial's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| Keynote Financial vs. Reliance Communications Limited | Keynote Financial vs. Univa Foods Limited | Keynote Financial vs. Newgen Software Technologies | Keynote Financial vs. Sapphire Foods India |
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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