Correlation Between Microsoft and LUXOR-B
Specify exactly 2 symbols:
By analyzing existing cross correlation between Microsoft and Investeringsselskabet Luxor AS, you can compare the effects of market volatilities on Microsoft and LUXOR-B 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 LUXOR-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and LUXOR-B.
Diversification Opportunities for Microsoft and LUXOR-B
Weak diversification
The 3 months correlation between Microsoft and LUXOR-B is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Investeringsselskabet Luxor AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsselskabet 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 LUXOR-B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investeringsselskabet has no effect on the direction of Microsoft i.e., Microsoft and LUXOR-B go up and down completely randomly.
Pair Corralation between Microsoft and LUXOR-B
Given the investment horizon of 90 days Microsoft is expected to generate 0.83 times more return on investment than LUXOR-B. However, Microsoft is 1.21 times less risky than LUXOR-B. It trades about 0.0 of its potential returns per unit of risk. Investeringsselskabet Luxor AS is currently generating about -0.07 per unit of risk. If you would invest 42,574 in Microsoft on August 29, 2024 and sell it today you would lose (188.00) from holding Microsoft or give up 0.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Microsoft vs. Investeringsselskabet Luxor AS
Performance |
| Timeline |
| Microsoft |
| Investeringsselskabet |
Microsoft and LUXOR-B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and LUXOR-B
The main advantage of trading using opposite Microsoft and LUXOR-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, LUXOR-B 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 LUXOR-B will offset losses from the drop in LUXOR-B's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| LUXOR-B vs. Skjern Bank AS | LUXOR-B vs. Groenlandsbanken AS | LUXOR-B vs. Fynske Bank AS | LUXOR-B vs. Lollands Bank |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |